The case against the Islamic gold dinar

Murat Cizakca

MPRA Paper from University Library of Munich, Germany

Abstract: The claims that the Islamic gold dinar will avoid inflation and other ills of current economic crises are examined by studying how coinage systems actually functioned in history.The article shows that not only these claims are baseless but also that coinage would increase the prevailing interest rate in an economy - hardly an Islamic position. It is argued that a gold or silver based dinar would be harmful for Islamic societies and attempts to introduce them should therefore be prohibited.

Keywords: Islamic gold dinar; interest rate; Gresham's Law; barter; commodity money; money as a medium of exchange; fiat money (search for similar items in EconPapers)
JEL-codes: O53 Z12 (search for similar items in EconPapers)
Date: 2010-11-12
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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