| Answer: Money in the form of paper
currency has originated in the last few centuries. The issue of depreciation due
to inflation has arisen because of the very nature of paper currency. Prior to
this, goods were bought and sold on the basis of real commodities like gold and
silver coins for example, and there was no ‘false’ depreciation. However, today,
this change in situation certainly calls for some corrective measures.
As such, in my opinion, there seems no
reason for Islam to disregard inflation and depreciation of paper currency.
Whether this measure will actually root out inflation may be debatable, but the
point however is that the nature and extent of the corrective measure is such
that it requires state authority. Only a state has the power to bind financial
institutions and other sectors of the economy to make inflationary adjustments.
The common man, you would perhaps agree, cannot do this. Therefore, unless the
state realises this problem, nothing much can practically be done.
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