A New Viewpoint on the Nature of Money Based on the Theory of Social Capital in Islamic Thought
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https://doi.org/10.5281/zenodo.10977235Keywords:
Monetary Economics, The Nature of Money, Credit Money, Social Capital, Monetary GovernanceAbstract
The purpose of this paper is to provide a new understanding of the nature of money. It aims to analyze the credit behind money based on Islamic thought and to explain the real truth behind the formation of money. It also aims to study conventional issues arising from money creation and propose solutions by introducing a new view on the nature of money to help governance of the monetary system. Also this paper uses a qualitative method by analyzing relevant studies and literature about money to understand the nature of money and Shariah-related issues. The paper finds that the real truth behind money is social capital. This social capital comes from the trust and confidence of people in the government, and it can be accumulated and stored. This paper provides a new viewpoint on money and considers it as a social institution and public property, which means its management is in the hands of the government so it can create money for society's interests. The paper provides a new understanding of money based on Islamic thought, which can be useful in monetary governance and shariah compliance with money creation.
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