Journal Article

Reform Proposals in the Monetary System for Attaining Global Economic Stability

Joob, Mark

2017

Overview

This paper examines reform proposals for the global monetary system aimed at achieving sustainable financial and economic stability in light of recurring global crises. Mark Joob argues that the root cause of instability-from the Great Depression to the 2008 financial collapse-lies in the fiat money system, which allows money creation through credit expansion unlinked to real production. This system, he explains, has led to massive debt accumulation, asset inflation, and widening disparities between developed and developing economies. Joob maintains that central banks have increasingly served as instruments of concentrated financial power rather than agents of stability. The paper reviews several reform proposals, including: linking money to real assets or a basket of commodities, establishing a neutral global reserve currency to replace the U.S. dollar, and limiting credit creation to the rate of real economic growth. Joob emphasizes that true reform must go beyond technical fixes to involve a moral and structural transformation of the nature of money, redefining it as a tool for social service rather than domination. He also highlights the relevance of Islamic economic principles, which tie money to real transactions and prohibit interest and speculative practices. The study concludes that achieving global economic stability requires a reformed monetary system founded on transparency, fiscal discipline, and social responsibility, ensuring that finance serves humanity rather than the reverse. Abstract Written by Dar AlMandumh, 2025, Using AI.

• Publisher: جامعة الملك عبدالعزيز - معهد الاقتصاد الإسلامي
• Subject: الاقتصاد الإسلامى / السياسة الاقتصادية / السياسة النقدية