Abstract
This paper claims that to propose an alternative way through
the establishment of monetary policy. The definition of rationale human
behavior in conventional system and the definition of rational human behavior in
Islamic economic system are different in many ways so that the driver dynamics
of the conventional economic system and Islamic economic system are
differentiating. The demand of money which is the crucial point for conducting
monetary policy in two systems is driven with different necessities. Due to
stability of demand of money and robust financial system in the context of
Islamic banking system, monetary policy can be more effective through providing
price stability. Monetary policy in the context of Islamic finance do not
commit just price stability but also commit more equate socio-economic justice
and equitable distribution of income and wealth and optimum rate of growth.
Keywords
References
- Ariff, M. (1982). Monetary Policy in an Interest-Free Islamic Economy – Nature and Scope, in Ariff, M. (ed.), op. cit., 287–302.
- Awad, I. and Soliman, A. (2016). The stability of the demand for Money function in Islamic and non-Islamic monetary policy regimes, economis ıssues vol.21, Part 1, 2016.
- Chapra, M. U (1996). Monetary Management in an Islamic Economy_, Islamic Economic Studies, 4(1), December, 1–35.
- Bernanke, Ben & Reinhart, Vincent: 2004 ‘’Conducting Monetary Policy at Very Low Short-Term Interest Rates’’ Aea Papers And Proceedıngs., pp. 85-90.
- Chapra, M. U. (1985) “ Towards a Just Monetary System’’, The Islamic Foundation, UK.
- Darrat, A. and Kia, A. (2003). Modeling Money Demand under the Profit-sharing Banking Scheme: Evidence on policy Invariance and Long-run Stability
- Eğri, T. & Karasu, O. & Kızılkaya, N. (2013). İslam İktisadını Yeniden Düşünmek. İGİAD
- Hoggart, G. (1996). Introduction to monetary policy. Bank of England. UK
- İncekara, A. and Ustaoğlu, M. (2014) Islamic Finance Alternatives For Emerging Economies. U.S.Apalgrave Tabakoğlu, A. (2013) İslam İktisadına Giriş. İstanbul.
- Yousefi, M, Abizadeh, S. and McCormick, K (1997) Monetary Stability and Interst free Banking: the Case of Iran, Applied Economics, 29, 869-876.
Abstract
References
- Ariff, M. (1982). Monetary Policy in an Interest-Free Islamic Economy – Nature and Scope, in Ariff, M. (ed.), op. cit., 287–302.
- Awad, I. and Soliman, A. (2016). The stability of the demand for Money function in Islamic and non-Islamic monetary policy regimes, economis ıssues vol.21, Part 1, 2016.
- Chapra, M. U (1996). Monetary Management in an Islamic Economy_, Islamic Economic Studies, 4(1), December, 1–35.
- Bernanke, Ben & Reinhart, Vincent: 2004 ‘’Conducting Monetary Policy at Very Low Short-Term Interest Rates’’ Aea Papers And Proceedıngs., pp. 85-90.
- Chapra, M. U. (1985) “ Towards a Just Monetary System’’, The Islamic Foundation, UK.
- Darrat, A. and Kia, A. (2003). Modeling Money Demand under the Profit-sharing Banking Scheme: Evidence on policy Invariance and Long-run Stability
- Eğri, T. & Karasu, O. & Kızılkaya, N. (2013). İslam İktisadını Yeniden Düşünmek. İGİAD
- Hoggart, G. (1996). Introduction to monetary policy. Bank of England. UK
- İncekara, A. and Ustaoğlu, M. (2014) Islamic Finance Alternatives For Emerging Economies. U.S.Apalgrave Tabakoğlu, A. (2013) İslam İktisadına Giriş. İstanbul.
- Yousefi, M, Abizadeh, S. and McCormick, K (1997) Monetary Stability and Interst free Banking: the Case of Iran, Applied Economics, 29, 869-876.
Details
| Journal Section | Articles |
|---|---|
| Authors | |
| Publication Date | June 30, 2017 |
| Published in Issue | Year 2017 |
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