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    • Monetary Management in an Islamic Economy | Universitas Islam Bunga Bangsa Cirebon Managed money is a new phenomenon which has gained prominence after the collapse of the Bretton Woods syst..."> Managed money is a new phenomenon which has gained prominence after the collapse of the Bretton Woods syst..."/>
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    Monetary Management in an Islamic Economy

    Managed money is a new phenomenon which has gained prominence after the collapse of the Bretton Woods system in August 1971. There is no possibility of finding a precedence for it in the days of the Prophet (pbuh) or in early Islamic history. A number of questions are, therefore, continually raised about the monetary system that a Muslim country may adopt. Is it necessary to go back to the then-prevailing system or is it justifiable to continue the managed money standard that now prevails almost in every country around the world, including the Muslim countries? If so, what constraints may have to be placed upon this system to enable it to help realize the maqasid al-shari'ah (goals of Islamic teachings, referred hereafter as the maqasid), and what policy instruments may be used to realize these goals? This paper tries to answer these and some other related questions.

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