Money Islamic View

In advanced societies, known as a medium of exchange and unit of measure of value to conduct a transaction. Islam has known medium of exchange and measure of value, even the Koran explicitly states gauge the value of gold and silver in various verses. The jurists interpret the gold and silver as money dinar and dirham.

In the history of Islamic economy, money as a medium of exchange and measure of value, have been printed since the time of Caliph Umar and Uthman, even the currency is printed at the time of Caliph Ali was kept in a museum in Paris. This shows that the Islamic world has known the currency long before Adam Smith, father of Conventional Economics, wrote the book "The Wealth of Nations" in 1766 on the Word of God Almighty:

"...... The people who keep the gold and silver and do not menafkahkannya in the way of Allah, then Tell them, (that they will get) a painful punishment." (QS.9 / At-Tawbah: 34)

functions of Money

Equation of the function of money in Islamic economics and conventional systems is the money as a medium of exchange (medium of exchange) and the unit value (unit of account), while the difference of conventional economics to add one more function as a store of value (store of value) which later evolved into "motif Speculation demand for money "that alters the function of money as a commodity trading. Much earlier, Imam al-Ghazali has warned that the "Trading in currencies is like imprisoning the functions of money, if a lot of money traded, He lived a bit of money that can serve as money."

Thus, the Islamic concept, money is not included in the utility function because of the benefits that we get instead of the money directly, rather than its function as an intermediary to transform