Islamic Financial Development between the Volatility of Inflation and the Revival of Economic Growth in the MENA Region

Mtiraoui, Abderraouf

doi:10.47191/ijsshr/v4-i11-01

Cited by 1 publication

(1 citation statement)

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“…Inflation can only predict the effect of return on assets on the growth of Islamic banking in Indonesia (Djazuli & Candera, 2021). Islamic financial development remains effective in slowing economic growth when there is an inflationary situation for our Middle East and Northern Africa (MENA) study region (Mtiraoui, 2021). The Indonesian economy has experienced a 65% growth in assets over the past five years, making Islamic finance a significant contributor to economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Asset-Based Money Systems in a Global Context: Implications for Social Inclusion and Economic Development

Rehana Yamin,

Noman Arshed,

Ejaz Aslam

2024

IJMRES

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Fiat money based financial system has disturbed the balance between household demand and firm supply. Further, government monetary intervention to curb inflationary demand is hurting production via the cost of capital and disturbing the functionality of the financial system in terms of capital market misallocation. These aspects are trickling down to cause social disturbance in the economy. Corresponding to it, the gold standard or at least assets-based money promotes social inclusion, empowers marginalized communities, and addresses socio-economic challenges by using tangible assets as a monetary system. The study explores assets-based money’s theoretical foundations, distinguishing it from traditional debt-based models and its potential benefits on social inclusion. It analyzes potential benefits, challenges, and limitations in implementing assets-based money systems. Several empirical studies explored debit cases of Islamic and conventional finance sectors, but this study examines the high power money and social inclusion in the economy. For this determination, the quantitative research approach consisted of selected 143 countries panel data of conventional and Islamic financial statements from 1960-2022. The model contains regression estimates, descriptive analysis, and correlation coefficient analysis. The assets-based money boosts living standards and positively impacts poverty reduction. This money reduces the inflationary effects of monetary expansion, hurting the purchasing power of low-income groups. Further, it is expected to have a growth-promoting effect via risk sharing and resource distribution. Assets-based money can support economic growth, financial stability, and inclusive development through a well-designed implementation strategy, but success depends on thorough research and analysis.

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Section: Literature Reviewmentioning

confidence: 99%