MONETARY POLICY?
Answer:
**** Monetary policy always plays a very important role in the economic progress
of any country. Traditionally it has been a very important part of economic policy
together with fiscal policy. But in the twentieth century monetary policy has been
enhanced in the economic success of a country. Central bank of a country is the
primary player in successful implementation of monetary policy, so in other words
this can be called the policy of central bank to regulate the supply of money.
DEFINITION:
Monetary policy is a set of actions that can be undertaken by a nation's
central bank to control the overall money supply and achieve sustainable
economic growth.
OBJECTIVES:
Economic well-being with full employment and optimum rate of economic
Growth
the basic objective of Shariah is the welfare of people and relief of their
hardships. this is only possible through satisfaction of all basic human needs,
Hence full and efficient employment of human resources is an integral part of
Islamic economic system
Socio economic justice with equitable distribution of income and wealth
Qur’an and Sunnah has put so much emphasis on equitable distribution of wealth
and socio economics justice. any monetary policy in an Islamic economic system
cannot flourish until and unless it does not help materialize these two objectives.
Money, banking system and monetary policy should be so designed that they are
finely interwoven into the fabric of Islamic values
Stability in the value of money
Answer:
**** Monetary policy always plays a very important role in the economic progress
of any country. Traditionally it has been a very important part of economic policy
together with fiscal policy. But in the twentieth century monetary policy has been
enhanced in the economic success of a country. Central bank of a country is the
primary player in successful implementation of monetary policy, so in other words
this can be called the policy of central bank to regulate the supply of money.
DEFINITION:
Monetary policy is a set of actions that can be undertaken by a nation's
central bank to control the overall money supply and achieve sustainable
economic growth.
OBJECTIVES:
Economic well-being with full employment and optimum rate of economic
Growth
the basic objective of Shariah is the welfare of people and relief of their
hardships. this is only possible through satisfaction of all basic human needs,
Hence full and efficient employment of human resources is an integral part of
Islamic economic system
Socio economic justice with equitable distribution of income and wealth
Qur’an and Sunnah has put so much emphasis on equitable distribution of wealth
and socio economics justice. any monetary policy in an Islamic economic system
cannot flourish until and unless it does not help materialize these two objectives.
Money, banking system and monetary policy should be so designed that they are
finely interwoven into the fabric of Islamic values
Stability in the value of money
