معرفت اقتصاد اسلامی

In conventional economic literature, monetary policymaking is based on the “money market” approach and the use of the “interest rate” as a nominal anchor. This approach is rejected in the Islamic economic system due to its usurious nature and the inherent disconnect between the monetary and real sectors. The present study aims to design an alternative model, theoretically explain and mathematically prove “credit quality controls”. The research method is descriptive-analytical using Overlapping Generations (OLG) modeling is in an interest-free environment. The research findings show that not only does the elimination of interest rates not lead to instability, but also provides a necessary and sufficient condition for a stable equilibrium if “monetary governance” based on directing credit to productive sectors is applied. The model results indicate that qualitative intervention by the Islamic state (through tools such as targeted credit lines and increasing the assets of low-income groups) without the need for price instruments ensures the proportionality between money flow and production and restores distributive justice as an endogenous variable of monetary stability.