This research deals with the question what the economic system based on precious metals (the natural situation) looked like in the Muslim world and if the evolution toward fiat money violated the...Show moreThis research deals with the question what the economic system based on precious metals (the natural situation) looked like in the Muslim world and if the evolution toward fiat money violated the commandments of the sharia concerning riba, particularly riba al-fadl and riba nasi’ah? These two forms of riba apply specifically to gold and silver, designated in the Quran and Sunnah as natural money. The evolution of money described by Fox and Ernst consists of five different stages, namely the natural situation where gold and silver are valued by their intrinsic value. This situation is sharia compliant but in the next stage coins were valued at face or nominal value, a violation of riba al-fadl which prescribes the exchange of weight for weight. Bank money is seen as the next stage, and this is problematic regarding riba nasi’ah as the exchange of gold and silver is deferred whereas the sources prescribe exchange being done on the spot. Paper money convertible to gold is the fourth stage. This again constitutes deferred exchange of metals, but also riba al-fadl as there is no 100% backing of the notes brought in circulation. Fiat money is totally divorced from gold and silver and is always brought into existence as a loan with interest. Islamic finance hasn’t really engaged with the topic of the permissibility of fiat money, but it appears interest in the subject is gaining traction as most Muslims feel that from an Islamic perspective there is something fundamentally wrong with the current financial system.Show less
Sceattas, a silver currency only produced for approximately less than a century, offer tremendous insights into a multi-regional and relatively unregulated currency. While its short-lived...Show moreSceattas, a silver currency only produced for approximately less than a century, offer tremendous insights into a multi-regional and relatively unregulated currency. While its short-lived production may encourage ideas that it played a relatively unimportant role in post-Roman, early medieval Europe, this is not the case. The coinage quickly became an important part of North Sea trade. Merchants, from Northern France, the Low Countries, parts of Denmark, and England all relied on the coins as a medium of exchange. The modern-day Netherlands is home to numerous production sites of sceattas, indicating its importance in the North Sea trade. Two major types of sceattas were most likely produced here, and are both the most numerous types discovered. They are called Series D and Series E or Continental Runic Type and Porcupine Type. This study aims to examine just how widespread the distribution of these types and the other seventeen series found in the Netherlands was on the basis of the evidence in the Numis database up to 2016. Distribution for the coins will be based on a number of variables, namely overall location, this location examined under a historical context, and an examination of find sites compared to the environment of 800 AD. It appears that the distribution is not random over the country but mainly limited to Domburg, a small part of the Central Dutch River area and the Frisian area of Westergo. This relates the coinage to international trade rather than a widespread use in a ‘moneraty economy’.Show less
