Issues Involved in the Proposal of ‘A Global Currency to Stabilize the Monetary System’ قضايا تشارك في اقتراح "عملة عالمية لتثبيت النظام النقدي"

Salman Ali

Journal of King Abdulaziz University: Islamic Economics, 2017, vol. 30, issue 2, 59-63

Abstract: The lead paper, “A Possibly Shariah-Compatible Global Currency to Stabilize the Monetary System”, puts forward an interesting proposal to create a Trade Referenced Currency (TRC) at the global level that can be potentially used as a common unit of account and internationally accepted means of payment. The author (Bernard Lietaer) introduces the TRC as a proposed supra-national complementary currency that can be used in parallel with existing currencies and financial mechanisms. It is targeted to address five problems faced in the present-day international financial system, i.e. monetary instability, pro-cyclical money creation, short-termism of financial decision-making, and the involvement of interest (riba) in the money creation process through fractional reserve banking. The paper is not about the nature and role of money. However, one cannot escape highlighting some of the issues associated with money while commenting on the paper.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:abd:kauiea:v:30:y:2017:i:2:no:5:p:59-63

DOI: 10.4197/Islec.30-2.5

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