1
Faculty, Hawzeh and University Research Institute
2
Ph.D. Student, Jurisprudence, Imam Sadiq University
Abstract
The issue of currency devaluation and whether or not it should be compensated has received much attention from economic and jurisprudence scholars, especially at the time of high inflation. The society has also been involved with the issue. The type of debt payment is closely related with the conception of the nature of currency. The opponents of compensation of currency devaluation believe that the nominal value of currency determines the nature of money. Thus, they believe in this compensation as interest. On the other hand, the proponents believe that the purchase power determines the nature of currency. Therefore, they stress on compensation of currency devaluation as returning the complete amount that was borrowed and not as interest. The article reasons that the nature of currency is its purchase value not its nominal value.
Nazari, H. A., & Ghafouri Charkhabi, H. (2010). Purchase Power as the Nature of Currency. Journal of Economic Essays; an Islamic Approach, 7(13), 103-128.
MLA
Hassan Agha Nazari; Hossain Ghafouri Charkhabi. "Purchase Power as the Nature of Currency". Journal of Economic Essays; an Islamic Approach, 7, 13, 2010, 103-128.
HARVARD
Nazari, H. A., Ghafouri Charkhabi, H. (2010). 'Purchase Power as the Nature of Currency', Journal of Economic Essays; an Islamic Approach, 7(13), pp. 103-128.
VANCOUVER
Nazari, H. A., Ghafouri Charkhabi, H. Purchase Power as the Nature of Currency. Journal of Economic Essays; an Islamic Approach, 2010; 7(13): 103-128.
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