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Ensuring Exchange Rate Stability: Is Return to Gold (Dinar) Possible ضمان استقرار سعر الصرف: هل يمكن الرجوع إلى الذهب؟

Author

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  • Zubair Hasan

    (Professor, Department of Economics Faculty of Economics and Management SciencesInternational Islamic University of Malaysia Selangor Dar-ul-Ehsan, Malaysia)

Abstract

This paper shows that the recent euphoria in Malaysia to introduce Gold Dinar as money in Muslim countries is devoid of reason. Despite the destabilizing potential of the current monetary arrangements in the world, the return to gold is neither desired nor practicable. The Denarists, as some prefer to characterize the proponents, are palpably asking for the moon. It is argued here that the introduction of gold money in Muslim countries is in no way an Islamic imperative. And, if enforced, the system is likely to end in a chaotic failure. Sagacity, not emotion, must guide public policy. تبين هذه الورقة أن الغبطة الأخيرة في ماليزيا لتَقديم الدينارِ الذهبي كنقد في البلدان الإسلامية غير معقولة. فبالرغم مِنْ الإمكانية المربكةِ للترتيبات النقدية الحالية في العالم، إلا أن العودة إلى الذهب غير مطلوبة وغير عملية، فالديناريون، كما يُفضّلَ بعض الناس أن يلقب أصحاب هذا الاقتراح، في الحقيقة يَطلبون المستحيل. وتناقش هذه الورقة مسألة أن اتخاذ النقد الذهبي في البلدان الإسلامية. وتبين أنه من المستحيل أن تكون أولوية إسلامية، وإذا فرض هذا النظام فمن المحتمل أَن يَنتهي إلى فشل فوضوي. فالحصافة، وَليسَ العاطفةً، هي التي يَجِبُ أَنْ تُوجّهَ السياسةَ العامّةَ.

Suggested Citation

  • Zubair Hasan, 2008. "Ensuring Exchange Rate Stability: Is Return to Gold (Dinar) Possible ضمان استقرار سعر الصرف: هل يمكن الرجوع إلى الذهب؟," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 21(1), pages 3-25, January.
  • Handle: RePEc:abd:kauiea:v:21:y:2008:i:1:no:1:p:3-25
    DOI: 10.4197/islec.21-1.1
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    References listed on IDEAS

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    1. Muhammad Aslam Haneef & EMAD RAFIQ BARAKAT, 2006. "Must Money 'Be Limited to Only Gold and Silver? A Survey of Fiqhi Opinions and Some Implicatlons هل تقتصر النقود على الذهب والفضة ؟," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 19(1), pages 21-34, January.
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    Cited by:

    1. Islahi, Abdul Azim, 2013. "Economic and Financial Crises in Fifteenth-Century Egypt: Lessons From the History," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 21, pages 71-94.
    2. Cizakca, Murat, 2010. "The case against the Islamic gold dinar," MPRA Paper 26645, University Library of Munich, Germany.
    3. Edo Omercevic, 2014. "Introducing Good Money: Legal Tender Problem Or Question Of Structured Approach?," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 53-64, March.
    4. Omerčević, Edo, 2013. "Monetary systems, sustainable growth and inclusive economic development," MPRA Paper 44559, University Library of Munich, Germany.

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