Evaluating the Responsibility of the Government RegardingCurrency Depreciation: A Political Economy of Currency in Religion

The currency value or the depreciation in the value of a country’s currency is related to governmental policies and institutes. In general, central banks, dependently or independently design and supervise monetary policies. Therefore, the higher the independence of the central bank is, the more successful the monetary policies will. Due to the lack of independence of the Central Bank in Iran, monetary policies are still under the control of the government. Thus, the government is an active participant in monetary policies. As the policies adopted by the government and the Central Bank have resulted in the significant depreciation of the national currency, and has negatively affected a large number of in the Iranian society this article is investigating the case in religion perspective. After proving the responsibility of the government and the central bank, the current study explores and discusses the jurisprudential rules relevant to this issue. Utilizing a specific type of political economy of the religion, and economic tools this study confirms the duty of the government to compensate for the economic damages imposed on the citizens. The results of the study show that improper government policies are responsible for current situation of Iranian currency. Based on Shariah, it finally recommends some policies to bail out from such bottleneck.

Keywords:

currency depreciation , responsibility of the government , jurisprudential rules , monetary policies