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The Nature of Money in Modern Economy – Implications and Consequences: Stephen Zarlenga and Robert Poteat طبيعة المال في الاقتصاد الحديث - الآثار والتبعات: ستيفن زارلينجا وروبرت بوتيت

Author

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  • Mabid Ali al-Jarhi

    (Professor of Economics and Finance at INCEIF, Malaysia)

Abstract

Reforming the contemporary monetary and financial system has come under the limelight with the onset of the last international financial crisis. Zarlenga and Poteat focus on the elimination of credit money and the return of the exclusive right of issuing money to the government as a key to reforming the system. In this comment, I argue that they are right, but reform should be wider and more comprehensive. My arguments are inspired by al-Jarhi’s model of an Islamic monetary system (1981). لقد أصبح إصلاح النظام النقدي والمالي المعاصر تحت الأضواء مع بداية الأزمة المالية الدولية الأخيرة. وتركز Zarlenga و Poteat على القضاء على أموال الائتمان وعودة الحق الحصري لإصدار الأموال إلى الحكومة كمفتاح لإصلاح النظام. في هذا التعليق ، أقول إنهم على حق ، لكن الإصلاح يجب أن يكون أوسع وأكثر شمولاً. حجتي مستوحاة من نموذج الجارحي لنظام النقد الإسلامي (1981).

Suggested Citation

  • Mabid Ali al-Jarhi, 2016. "The Nature of Money in Modern Economy – Implications and Consequences: Stephen Zarlenga and Robert Poteat طبيعة المال في الاقتصاد الحديث - الآثار والتبعات: ستيفن زارلينجا وروبرت بوتيت," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(2), pages 75-79, January.
    • Handle: RePEc:abd:kauiea:v:29:y:2016:i:2:no:5:p:75-79
    DOI: 10.4197/Islec.29-2.5
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    References listed on IDEAS

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    1. Harold L. Cole & Narayana R. Kocherlakota, 2001. "Efficient Allocations with Hidden Income and Hidden Storage," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(3), pages 523-542.
    2. Al-Jarhi, Mabid, 1980. "A Monetary and Financial Structure for an Interest-Free Economy: Institutions, Mechanism & Policy," MPRA Paper 66741, University Library of Munich, Germany, revised 2004.
    3. Al-Jarhi, Mabid, 2014. "Towards an Economic Theory of Islamic Finance Regulation," MPRA Paper 66744, University Library of Munich, Germany, revised 2014.
    4. Isabel Correia & Pedro Teles, 1999. "The Optimal Inflation Tax," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(2), pages 325-346, April.
    5. Green, Jerry R. & Scheinkman, Josè Alexandre (ed.), 1979. "General Equilibrium, Growth, and Trade," Elsevier Monographs, Elsevier, edition 1, number 9780122987502.
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