Askari and Krichene provide a comprehensive background for recent international financial crisesarapid expansion of interest-bearing debt and monetary expansion though the fractional reserve banking system. In this context, the authors provide an analysis of the experience and issues associated with international payments systemsathe various forms of the gold standard, the Bretton Woods system and the present system of flexible exchange rates. The authors go on to examine the case for fixed exchange rates (gold standard and other interesting variations) anchored in Islamic finance. The message of this book is that the gold standard could provide a solution for addressing international financial instability if and only if it is anchored in 100% reserve banking, which is an essential pillar of Islamic finance.If the investmentfails, the borrower is still legally bound to reimburse the loan. ... Markets. Stock markets werenecessary for mobilizing capital resourcesaventure and equity capitalaand. Investment banks oughtto invest directlyin projects inanbsp;...
|Title||:||The Gold Standard Anchored in Islamic Finance|
|Author||:||Hossein Askari, Noureddine Krichene|
|Publisher||:||Palgrave Macmillan - 2014-12-17|