چکیده:
The present paper is an attempt to: 1- Demonstrate how money is created (by the nature of the system), and to estimate the inflation resulting from monetary factors in both usurious and non-usurious systems. Operational aspects of Islamic and non-Islamic banking systems are compared. 2- Introduce a corrective term to be added to the multiplier of the supply of money, in order to prevent the under-estimation of the multiplier into the usurious system.
خلاصه ماشینی:
"Indeed here the total volume of money in circulation is equal to the volume of the bank notes in circulation plus total demand deposit (M=C+D) and since DD has been computed before as: if “1” unit enters in the beginnings as preliminary deposit the result as follows: Which is demonstrated here by “m” and is the multiplier of the supply of money([1]) ______________________________ [1] - If the bank drafts and the bank notes should be jointly in circulation and should also be considered as excess reserves, the money multiplier could be computed in the same manner and will be as follows: whereas a (gD + gE ) is our corrective term and is money multiplier in the form of bank notes (deposit money) With the creation of inflation, initiated by the usurious system and concealed therein, not only are the bank’s profits not reduced, but with the fall in the value of money, the bank will be able to create money on a greater level, because during an inflation period, the need for money grows (though the marginal utility of money diminishes).
6- Mobilization and usage of money in the Islamic Banking System, and their outcome Whereas in a non-usury banking system, because of the different manner of granting loans and credits and the different nature of the banking operations, and because the money supply and the changes occurring in the volume of money should necessarily be proportionate to and coordinated with the economic activities in the country, the inflation resulting from the monetary factors, sinks to its lowest levels."