STATE MONETARY POLICY : A COMPREHENSIVE MODEL REVIEW FROM AN ISLAMIC ECONOMIC PERSPECTIVE

Abstract

Speculative practices of interest rate usage, causing an imbalance in the amount of money circulating in the financial sector and the real sector.This study aims to provide recommendations for models and policies of the Islamic monetary system that can be applied in the country. This research method uses a qualitative method with a descriptive-analytical approach based on literature, where the data collected comes from literature on the Islamic monetary system, and its relevance, then the data is analyzed descriptively to provide an overview through content analysis in order to study comprehensively. The results of this study are recommendations for monetary policies that can be applied in the country to emphasize more on increasing the ratio/portion of profit sharing and reducing the burden of margins on murabahah contracts imposed by financial institutions on parties in need of funds.