Welcome to JEEIR
e - ISSN 2289 - 2559

Journal of Emerging Economies and Islamic Research

 
 

Volume 5, Number 3, Year 2017
 

REGULAR ARTICLE

ABSTRACT

Currency instability often leads to economic crisis. This can be seen in period of worldwide economic recession in 1933, Mexican Peso crisis in 1995, currency depreciation in Southeast Asia  in 1997 and 1998, and the  Russian Ruble crisis in 1998. These crises have led to a discourse on fiat money as a possible culprit to  the crises due to its inherent promotion of speculation, debt and interest related economy. The currency crises have also resurfaced  the discourse on  using gold as a currency. This paper discusses the advantages of using gold dinar that enables it to be a superior currency than the existing fiat money. The paper further examines the possibility of replacing fiat money with the gold dinar and recognises that the implementation of gold dinar proves to be problematic under current realities. One of the major problems related to fiat money is that of credit creation. The paper argues that if the Islamic banking industry under the control of central bank could limit credit creation to prevent excessive growth of money, then the use of fiat money could be defended. In addition, current developments in crypto and digital  currency could make the discourse of going back to gold in the future  rather obsolete. 

 

KEYWORDS

Gold dinar, Fiat money, Currency

 

isuzu cikarang isuzu cikarang bekasi jakarta isuzu giga isuzu giga isuzu giga isuzu elf isuzu panther Dealer Isuzu Bekasi Cibitung Cikarang isuzu elf isuzu giga elf sparepart isuzu kredit isuzu harga isuzu promo isuzu dealer isuzu isuzu isuzu mobil isuzu bekasi isuzu online isuzu kita promo isuzu promo isuzu isuzu giga isuzu panther isuzu elf paket umroh Resep Masakan Resep Masakan