Money and Monetary Policies in Early Islam مقاله

خلاصه ماشینی:

The Importance of Trade and Means of Exchange in the Economy of Early Islam The geographical location of the Arabian Peninsula, situated between the three continents of Asia, Europe, and Africa, provided a special advantage for the promotion of trade among the governments of Iran and Rome, and their subordinate states such as Syria, Abyssinia, and Yemen before the advent of Islam in this peninsula. Along this route, seasonal markets were also formed, and the governments that were established in these areas, especially at the time of the advent of Islam, depended on this commercial activity, and their capitals were centers of trade and exchange for caravans that traveled along the aforementioned route. These two types of currency were also accepted in the economy of the island because, in addition to the political power of the aforementioned governments, which gave credibility to the means of exchange within their territory, the Arab trading parties were ultimately Iranians and Romans who conducted their buying and selling either with dirhams or dinars. These developments as a whole increased the demand for investment in the early Islamic economy and harmonized and balanced the flow of money and goods. For the first time, a coin was minted in the name of the Islamic government, and the determination of the volume of money came under the control of the Bayt al-Mal. To ensure the proper functioning of the money market, other measures were also taken by the Bayt al-Mal, including direct interventions, enacting laws and regulations that prohibited hoarding of money, lending and usurious transactions, and dealings in goods for goods, and also using incentive policies to expand interest-free loans, charity, and endowments, which helped to direct savings into investment and balance the flow of money with the flow of goods and therefore preserve the value of money.