Control of Inflation in The Islamic Economic System
Keywords:Inflation, Islamic economics, disruption
Inflation is considered a monetary phenomenon caused by a decrease in the value of a currency unit against a commodity. This monetary phenomenon negatively affects the economy because it causes disruption to the functioning of money, distorts prices, damages output, undermines efficiency and productive investment and causes injustice and social tension in society. Islamic economics offers solutions to overcome inflation, including reforms to the monetary system, linking the quantity of money circulation with the quantity of production, directing spending and prohibiting excessive attitudes, preventing the accumulation of commodity goods and increasing production. Another solution to overcome inflation is implementing a fiscal policy that includes maximizing zakat collection and optimizing zakat utilization, charging fees on idle funds (cost of the idle fund) and using the principle of revenue sharing in every transaction or any business and money.