ISLAMIC MACROECONOMICS
MONEY AND MONETARY
POLICY
,MONEY
, MONEY AND ITS FUNCTION
From a conventional perspective,
• Barter trade, has many
‘economists define money (also
disadvantages such as the
referred to as money supply) as
requirement for double
anything that is generally
coincidence of want, the
accepted in payment for goods
indivisibility of goods and
and services or in the repayment
services, and pricing
of debts’ (Mishkin, 2007, p. 49).
challenges. As such,
introducing money was
This implies a broader definition of
necessary for the development
money, other than just notes or
of societies.
coins (currency). It includes
demand and savings deposits,
• Money today does not refer
since cheques issued from
only to currency
demand deposits are also
(paper notes and coins).
accepted as payment for
purchases, and savings deposits
can be quickly converted into
currency or demand deposits.
, FUNCTION OF MONEY
MONEY AND MONETARY
POLICY
,MONEY
, MONEY AND ITS FUNCTION
From a conventional perspective,
• Barter trade, has many
‘economists define money (also
disadvantages such as the
referred to as money supply) as
requirement for double
anything that is generally
coincidence of want, the
accepted in payment for goods
indivisibility of goods and
and services or in the repayment
services, and pricing
of debts’ (Mishkin, 2007, p. 49).
challenges. As such,
introducing money was
This implies a broader definition of
necessary for the development
money, other than just notes or
of societies.
coins (currency). It includes
demand and savings deposits,
• Money today does not refer
since cheques issued from
only to currency
demand deposits are also
(paper notes and coins).
accepted as payment for
purchases, and savings deposits
can be quickly converted into
currency or demand deposits.
, FUNCTION OF MONEY
