This chapter presents the role and relevance of the monetary sector in the implementation of the Islamic financial system and real practices. This chapter explains the thought of Islamic monetary economics and discusses the concepts of conventional economics as a framework for issues concerning Islamic monetary economics. The discussion begins with the flow of funds from the revenue and expenditure side and the concept of IS-LM balance in Islam, followed by the theory of market imperfection and financial instability along with the role of the monetary authority in the Islamic economy.

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Islamic Monetary Economic Thought

  • Solikin M. Juhro,
  • Ferry Syarifuddin,
  • Ali Sakti

摘要

This chapter presents the role and relevance of the monetary sector in the implementation of the Islamic financial system and real practices. This chapter explains the thought of Islamic monetary economics and discusses the concepts of conventional economics as a framework for issues concerning Islamic monetary economics. The discussion begins with the flow of funds from the revenue and expenditure side and the concept of IS-LM balance in Islam, followed by the theory of market imperfection and financial instability along with the role of the monetary authority in the Islamic economy.