Monetary and Banking Reform - Bringing back in the Monetary Fundamentals of Finance

On Monetary Stability and Monetary Reform

The Goal of Monetary Reform

The essential reason that a 100-percent-reserve gold standard should be the ultimate goal of monetary reform is that it would secure the economic system against the evils both of inflation and of deflation–depression. In addition, it would be consistent with the fundamental moral–political principle of the absence of the initiation of physical force and thus the positive presence of individual ...

Islamic Finance and the Fluctuations of Investment and Output: The Role of Monetary Policy

The recent global financial crisis once again revealed the harmful effects of interest-based contracts in the conventional financial system. Islamic finance, as an alternative financial system, discourages interest rate and debt financing. This paper investigates the effects of two financial systems, namely the conventional and Islamic systems, on macroeconomic variables. To achieve this goal, ...

The Analysis of the Monetary Reform in Iran and the Requirements for its Success

Double-digit inflation has been one of the problems of Iran's economy in recent decades that policymakers have not been able to solve. The continuation of high inflation has raised the issue of reforming the national currency. The experiences of countries that have reformed their currencies show that this policy alone has little effect and its success requires other measures. In this paper, eig...

Corporate Finance and the Monetary Transmission Mechanism

We analyze the transmission effects of monetary policy in a general equilibrium model of the financial sector, with bank lending and securities markets. Bank lending is constrained by capital adequacy requirements, and asymmetric information adds a cost to outside bank equity capital. In our model, monetary policy does not affect bank lending through changes in bank liquidity; rather, it operat...