Fiat money: from the current Islamic finance scholars’ perspective

Jaffar, Syammon and Abdullah, Adam and Meera, Ahamed Kameel Mydin,(2017), Fiat money: from the current Islamic finance scholars’ perspective. , Humanomics, UNSPECIFIED

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Purpose – This paper aims to discuss the opinions of current Shariah scholars on the concept of debt money in the present-day fiat money system. Design/methodology/approach – Research design of this paper is a quantitative investigation of Shariah experts by distributing a questionnaire to them. As majority of Shariah scholars are also Shariah advisory of the current banking system, it is important to find out their level of knowledge on the issue of debt money created by the commercial banking system through the fractional-reserve banking (FRB) system. Findings – Based on this investigation, most Shariah scholars are unaware of and confused about the mechanics underpinning the creation of money, especially with respect to FRB as it is practiced by the conventional and Islamic banking systems. Originality/value – Based on this research, it is recommended that these scholars should improve their understanding of the operation of the fiat money system and its consequences. It is recommended that, in future, Shariah scholars should think “outside of the box” by creating Islamic financial instruments that do not resemble those of the conventional system
Keywords : Islamic finance, Fiat money, Fractional-reserve banking system (FRB), UNSPECIFIED
Journal or Publication Title: Humanomics
Volume: 33
Number: 3
Item Type: Article
Subjects: Ekonomi Islam
Depositing User: Users 15 not found.
Date Deposited: 19 Dec 2019 04:23
Last Modified: 19 Dec 2019 04:23

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