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Ensuring exchange rate stability: Is return to gold (Dinar)possible?


  • Hasan, Zubair


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.

Suggested Citation

  • Hasan, Zubair, 2007. "Ensuring exchange rate stability: Is return to gold (Dinar)possible?," MPRA Paper 8134, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:8134

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    References listed on IDEAS

    1. Chichilnisky,Graciela & Heal,Geoffrey M., 2005. "The Evolving International Economy," Cambridge Books, Cambridge University Press, number 9780521310017, December.
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    Cited by:

    1. 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.
    2. Cizakca, Murat, 2010. "The case against the Islamic gold dinar," MPRA Paper 26645, University Library of Munich, Germany.
    3. repec:pra:mprapa:39795 is not listed on IDEAS
    4. 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.
    5. Omerčević, Edo, 2013. "Monetary systems, sustainable growth and inclusive economic development," MPRA Paper 44559, University Library of Munich, Germany.
    6. Hasan, Zubair, 2011. "Money creation and control from Islamic perspective," MPRA Paper 28366, University Library of Munich, Germany.

    More about this item


    Gold Standard; Gold Dinar; seigniorage; Exchange rate stability; Bilateral trade agreements;

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General


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