Monetary Policy in a Contemporary Islamic Economy: Mechanisms and Foundations

Abstract

Islamic monetary policy plays an important role in influencing money supply and bank credit, as well as its contribution to achieving the economic and social goals of Islamic societies, but the quantitative and qualitative means and tools must be fully consistent with Sharia principles, and the banking system must be able to mobilize savings using a mechanism. Effective, and providing banking services in an optimal way, to reach the optimal number of financing applicants, in addition to achieving monetary stability, confronting inflation, and influencing the economy in a way that fits with the priorities of the Islamic community and achieves its objectives, so the research aims to determine the nature of the methodological foundations on which the policy is based Islamic monetary, and determining the nature of the policies used by the Islamic central bank in influencing economic activity.