Curse of Paper Money in Modern Society ====> The central bank has the sole authority to issue money (currency) and the responsibility to regulate the banking system in order to secure the value of money and realize the other objectives of monetary policy. Money serves as the medium of exchange and the commonly accepted means of payment, and as such as a measure of value. Excessive fluctuations in the value of money lead to economic distortions and causes social inequities. Inflation gives windfall gains to the rich and the business people but causes hardship to the fixed and low-income groups by eroding their purchasing power. Worse still, deflation often deprives the latter of their employment and means of livelihood. The phenomena of inflation and deflation are characteristic of the financial system based on the institution of interest, which is prohibited in Islam.
Posted on: Fri, 14 Mar 2014 10:22:15 +0000
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