The view of Ibn Taymiyyah on how the country should have authority to print money: "The amount of money (money that is lower than the Dinar and Dirham, such as copper) may only be printed in proportion to the number of transactions in such a way that guaranteed a fair price. Authority should not be printing money excessively harmful to society due to the destruction of the purchasing power of money already on them. "
If only thought Ibn Taymiyyah was used as reference by the monetary authorities and the financial world, Insha Allah the various crises that plagued the people of the whole world is not going to happen.
Due to human vanity, they are reluctant to seek clues correct - instead of learning from previous mistakes - they even buried humanity to the potential for even greater crisis.
I get some real evidence of what is done by the British government recently.
When efforts to rescue the economy by controlling interest rates has reached 0.5% - the lowest in 315 years! - Deemed not also heal the crisis there, they start looking for common (-sense-an) to polish their economies.
And the way he discovered that quantitative easing given the cool name - who impressed sophisticated, so it is not easy to understand people. What is actually quantitative easing "; following is my understanding that laymen - please Sorry to economists because I try to simplify your sophisticated science.
Quantitative easing is one way the central bank - in the UK meant the Bank of England - 'print' a large amount of 'new money' in its Balance Sheet. No need to print the report-report physical banknotes or coins it - but merely to add new numbers electronically at the central bank's balance sheet.
Once formed, then to what 'record' this money?, To buy troubled assets from the banking sector (such as housing loans), government securities etc.. In this way 'money' which was only fantasy that only typed in the balance sheets of central banks, have now entered the country's financial system.
Since each bank has an account at the central bank, the central bank also did not bother to physically move the money (which does not exist physically) into these banks, all only on computer data entry.
In the UK there is a committee called The Bank's Monetary Policy Committee has the authority to print the 'extra money' in these fantasies. Currently this committee has permission to add a 'money' at the central bank's balance sheet until a 150 billion pound sterling or U.S. $ 207 billion!. From the allowable limit, the current committee has been using half of the existing quota.
So what the implications for the British people?; While this solution may not be able to save them from the crisis - the obvious is the opposite of the value of money in the community will continue to fall - this is prohibited by Ibn Taymiyyah mentioned above.
Advanced techniques in dealing with such crises, most likely carried out by other countries as well; therefore the people or through their representatives should have access to policy-makers of public policy so that there is an understanding and overseeing them.
If we are not sure about this oversight, people can still be done to secure the results of his efforts is to maintain the physical assets or money with intrinsic value that could be Dinar, Dirham, gardens, livestock etc.. Allaah knows best.
