The Dynamics Of Fiscal And Monetary Policy In The Framework Of Modern Islamic Economics: A Theoretical And Practical Study
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Background: This study analyzes the dynamics of fiscal and monetary policy within a modern Islamic economic framework through a qualitative, descriptive-analytical approach with a literature review. Islamic economics is built on the principles of tawhid, justice, istikhlaf, and takaful, which fundamentally distinguish it from conventional systems.
Objective: Islamic fiscal policy integrates classical instruments (zakat, kharaj, waqf) with contemporary ones (sharia taxes, maqasid-based state budgets), while monetary policy rejects the interest system and develops profit-loss sharing mechanisms, sukuk, and sharia-based instruments.
Methods: Case studies of Malaysia, Indonesia, and the GCC countries demonstrate variations in implementation influenced by institutional context and political will.
Results: Key challenges include system dualism, limited human resources, weak coordination between authorities, and policy inconsistencies.
Conclusion: Recommendations include establishing national coordination of sharia economics, developing an integrated maqasid-based framework, innovating financial instruments, and digitizing to improve policy effectiveness in achieving falah (holistic welfare).
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Copyright (c) 2026 Rosidah Rosidah, Maiz Wahid Anshori, Dodi Sunanto, Amin Basir, Popon Srisusilawati
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