Open AccessMoney Impartiality: Panacea for Economic Crisis
Author(s) -
Jamal Othman
Publication year - 2010
Publication title -
international journal of management studies/international journal of management studies
Language(s) - English
Resource type - Journals
eISSN - 2232-1608
pISSN - 2180-2467
DOI - 10.32890/ijms.17.2010.10186
Subject(s) - fiat money , impartiality , economics , financial crisis , endogenous money , asset (computer security) , panacea (medicine) , law and economics , monetary economics , finance , monetary policy , keynesian economics , political science , law , alternative medicine , computer security , pathology , computer science , medicine
This paper overviews the political-economics of FIAT and asset-based money. The paper further highlights the presumably syaria standpoint of the impartial character of money as the fundamental factor that differentiates asset-based money from the FIAT money. It is argued that while it is ideal for asset-based money to make a comeback in the interest of holistic wellbeing (maslahah) of humankind, it is necessary to complement it with an appropriate financial and regulatory system to safeguard its impartiality, i.e. non-tradable, non-interest bearing, and non-debt financing to avoid the recurring pitfalls which are immanent in the conventional financial system. It is hoped this rather concise paper will offer a thought provoking discourse on how syaria principles may present the world a useful ideological construct for a new monetary and financial architecture in light of the global financial crisis. Keywords: Asset-based money; FIAT money; Syaria perspectives of money; money impartiality; money and sustainable development; money and financial crisis.