ADDRESSING ECONOMIC MELTDOWN： AN EVALUATION OF FIAT AND CREDIT MONEY FROM ISLAMIC PERSPECTIVE

The unrestrained issuance of fiat and credit money brings inflationary pressures that result in the depreciation of currency value, thus also the value of sovereign debt. Their liquidity allows predatory capitals to run havoc across the over-flnancialized global markets creating instability and frequent occurrence of monetary crisis. An in-depth analysis shows that fiat currencies are inherently ribawi （usurious） and their use involves gharar （uncertainty）, and their roles in international markets have promoted other practices of riba, and maysir （gambling）, all of which bring about economic oppressions and injustices. The flaws that are inherent in the fiat currency have made this quest for an alternative, namely, metal-based money, which is crucial especially for the Muslims because of its natural stability and fairness as a medium of exchange within the parameter of Islamic principles.