Ensuring exchange rate stability: Is return to gold (Dinar)possible?

Zubair Hasan

MPRA Paper from University Library of Munich, Germany

Abstract: This paper shows that the recent euphoria in Malaysia to introduce Gold Dinar as money in Muslim countries is devoid of reason. Despite the destabilizing potential of the current monetary arrangements in the world, the return to gold is neither desired nor practicable. The Denarists, as some prefer to characterize the proponents, are palpably asking for the moon. It is argued here that the introduction of gold money in Muslim countries is in no way an Islamic imperative. And, if enforced, the system is likely to end in a chaotic failure. Sagacity, not emotion, must guide public policy.

Keywords: Gold Standard; Gold Dinar; seigniorage; Exchange rate stability; Bilateral trade agreements (search for similar items in EconPapers)
JEL-codes: E0 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (7)

Published in JKAU: Islamic Economics 1.21(2008): pp. 1-21

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:8134

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