Monetary and Fiscal Policy Mix on the Economy: Sharia Perspective in Literature Review

Abstract

This study can conclude the Islamic economic literature's views on fiscal and monetary policy. The monetary policy use to execute the dual banking system will have an influence on macroeconomic policies. Meanwhile, In fiscal policy, the State Expenditure Government Budget instrument relies on taxes as income, whereas Islam, on the other hand, views zakat as the primary source of state revenue. This study used a qualitative approach and descriptive statistics from journal publications published from 2015 to 2021. The analysis results obtained 20 journals and research on the Mix of Monetary and Fiscal Policy on the Economic in the Sharia Perspective. It can be concluded that in the Islamic perspective, Monetary and fiscal policies are critical for a country's welfare, with government protection in the form of fiscal and monetary policies with an Islamic viewpoint as an alternative for creating national welfare.