Islamic Monetary Economics and Institutions

Theory and Practice

  • Muhamed Zulkhibri
  • Turkhan Ali Abdul Manap
  • Aishath Muneeza

Table of contents

  1. Front Matter
    Pages i-xxiii
  2. Muhamed Zulkhibri, Turkhan Ali Abdul Manap
    Pages 1-7
  3. Theoretical Foundation of Monetary Policy from Islamic Perspectives

  4. Monetary Policy, Policy Instruments and Financial Stability in Islamic Economy

  5. Back Matter
    Pages 193-201

About this book


This edited volume explores theoretical and empirical issues related to monetary economics and policy in the Islamic financial system. Derived from the Conference on Islamic Monetary Economics and Institutions: Theory and Practice 2017 held in Malé, Maldives, the enclosed papers highlights several option for authorities and regulatory bodies regarding monetary policy and regulation, as well as discussing how Islamic monetary policy effects growth, financial stability and resilience to shocks in practice. The inter-linkage between Islamic monetary policy and other markets are also explored. 

The subject of Islamic economics has gained considerable attention in the last four decades with the emergence of Islamic financial institutions around the world. This phenomenon has motivated economists to develop a comprehensive theoretical framework of modern monetary economics for Islamic economic system. An important characteristic of the Islamic economic system is the abolition of interest from the financial system. Islamic monetary economics is distinguished from conventional monetary economics due to the absence of interest. Therefore, under the Islamic economic system, monetary policy has to depend on other tools. In the early theoretical literature on Islamic monetary economics, many have discussed the role of money in Islamic economics system, while the number of empirical studies on Islamic monetary economics is a relatively new phenomenon. According to Islamic scholars, there are three main goals of Islamic monetary policy: a) economic well-being with full employment and optimum rate of economic growth; b) socioeconomic justice and equitable distribution of income and wealth and c) stability in the value of money. Hence, the Islamic monetary policy has several socioeconomic and ethical implications. 

Featuring regional case studies, this book serves as a valuable resource for academics, scholars, practitioners and policy makers in the areas of Islamic economics and finance.


Islamic monetary economics Islamic monetary policy Islamic finance Islamic banks Interest-free economy Macroeconomic model Waqf Zakat Fintech Participatory Finance Equity-Based Financial System

Editors and affiliations

  • Muhamed Zulkhibri
    • 1
  • Turkhan Ali Abdul Manap
    • 2
  • Aishath Muneeza
    • 3
  1. 1.Islamic Development BankIslamic Research and Training InstituteJeddahSaudi Arabia
  2. 2.Islamic Development BankIslamic Research and Training InstituteJeddahSaudi Arabia
  3. 3.Maldives Centre for Islamic FinanceHaveeree HinguMaldives

Bibliographic information

  • DOI
  • Copyright Information Islamic Research and Training Institute 2019
  • Publisher Name Springer, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-030-24004-2
  • Online ISBN 978-3-030-24005-9
  • Buy this book on publisher's site