The Concept and Role of Money in Modern Economy: An Islamic Perspective

Abstract

Money has received a great deal of attention among Muslim jurists, because of its relevance to shariah issues such as zakat, usury, and sale, etc. These issues are definitely of great importance for all Muslims. This article proceeds with a discussion of classical concept of money as envisaged by early Muslim Jurists and their different point of views about the application of the term money. In second part, the concept and conditions of money according to modern Muslim Jurist and emergence of Islamic currency have been discussed. This part of the article also covers the comparative study of the role and functions of money in both conventional and Islamic economics system. The functions of money as discussed by the modern economists have been discussed by the early Muslim Jurists in detail. The last part of this study consists of the conclusion and findings of this article.