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October 5, 2025Jurnal Hadratul Madaniyah0 citationsOpen Access

The Role of Monetary Policy in Stabilizing Inflation: An Islamic Economic Perspective

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IIIstiqomah IstiqomahIAItsla Yunisva Aviva

Key Points

  • Monetary policy helps stabilize inflation, ensuring economic balance through just methods free from usury.
  • Research indicates just monetary policies are essential for effective inflation stabilization within Islamic economics.
  • Descriptive qualitative method using literature study approach provides a thorough insight into Islamic monetary policy.
  • Findings suggest that certain conventional monetary instruments may still be viable under Islamic frameworks.

Abstract

Monetary policy plays a very important role in stabilizing inflation and maintaining economic balance. In the perspective economics, monetary policy must be based on the principle of justice, prioritize welfare, and avoid usury. This article examines the role of monetary policy in stabilizing inflation from the perspective of Islamic economics. This research uses a descriptive qualitative method with a literature study approarch, where data collection employs secondary data taken from books, journals, and articles that support the theme of this research. Research result indicate that in Islamic economic, stabilizing inflation is achieved through monetary policies that are just and free from usury. However, several sharia economic experts believe that there are some some conventional monetary policy instrumensts that can still be applied, such as reserve requirements, overall and selective credit ceilings, moral suasion, and chages in monetary policy

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Cite This Study

Istiqomah et al. (2025) studied this question.

synapsesocial.com/papers/68e25559d6d66a53c2475300https://doi.org/10.33084/jhm.v12i1.9825
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