Islamic behavioral mechanism for preserving the value of national currency in Islamic economy

In behavioral economics, the cultural factor of each country is highly significant. This capacity is particularly effective in Islamic countries for preserving the value of national currency. Islamic culture shapes the behavior of individuals in the Islamic community. Within Islamic beliefs and valu...

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Bibliographic Details
Main Authors: Tavakkoli Mohammad Javad, Sabit Abdulhamid, Mohaqiq Mohammad Anwar
Format: Article
Language:English
Published: Center for Religious Sciences Kom, Belgrade 2024-01-01
Series:Kom: Časopis za Religijske Nauke
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Online Access:https://scindeks-clanci.ceon.rs/data/pdf/2334-6396/2024/2334-63962402001T.pdf
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Summary:In behavioral economics, the cultural factor of each country is highly significant. This capacity is particularly effective in Islamic countries for preserving the value of national currency. Islamic culture shapes the behavior of individuals in the Islamic community. Within Islamic beliefs and values, there are principles that encompass all components necessary for maintaining the value of national currency. Principles such as Imam Sadiq selling excess wheat during its scarcity in the market serve as guidance in times of currency shortages, helping to avoid currency price inflation. Additionally, principles that emphasize the pursuit of knowledge and learning encourage the adoption of the latest production technologies, and the value placed on work in life leads to increased economic activity and higher production levels. Furthermore, principles like asceticism and piety, as well as the desirability of the rewards in the afterlife, encourage abstention from certain foreign luxury goods and promote activities that foster the economic well-being of the Islamic community. From this amalgamation, a framework can be constructed that contributes to the preservation of the national currency's value within an Islamic economy.
ISSN:2334-6396
2334-8046