Al-Maqrizi’s Monetary Reform-cheqda
Transcript of Al-Maqrizi’s Monetary Reform-cheqda
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MUSLIM MONEY
MASTERAL-MAQRIZI
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PRESENT BY:ISMAALENA ISMAIL 0634428
NURULHUSNA ARIP 0635044
NOR KHAIRUNNISA 0638784
HASMIDA MOHD RASPI 0639046
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HOW WAS HIS
LIFE ???
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HIS LIFE
Ahmad bin Abd al-Qader bin Muhammad bin
Ibrahim bin Tamim al-Bali al-Abidi al-Hsini.
Born in Cairo in 766AH/1364AD Died in (845AH/1441AD) on Thursday 26 of
Ramadhan.
Buried in Friday in Hush al-Sufiah al-Bibarsiah(Cairo).
He studied Quran,Prophet Muhammad tradition
and other branches of islamic studies.
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Teach hadith in Muayyadiah School in cairo
Serve the government of the mamluk under
Sultah Barkuk. Government officer in Diwan al-Insha
Qadi of the Shaari Mazhab
Imam of the Mesjid al-Hakim al-Fatimi. Muhtasib(Ombudsman)of Cairo.
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WHAT IS HE
ECONOMIC IDEAS ???
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The economic ideas of Al-Maqrizi
-not only confined money and inflation alone, but
encompasses the analysis of economic crises and its
linkages to the market forces and the economic role
of the state.
These ideas are found in his four monumental
works, namely:
1) Ighathat al-Ummah bi-kashf al-ghummah
2) Al-suluk li-Marifat dawal al-Muluk.
3) Shothur al-ugood fi thiker al-Nuqud
4) Al-Mawaiz wa-al-Itbar bi-dhikr wa-la-Athar
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The economic thought of al-Maqrizi emerges from
the fact that he lived in a crucial period of Islamichistory, that is the Mamluks period.
This period spanning over 250 years, can be divided
into two distinct period, the first ranging from 658AH/1250 AD to 792 AH/1390 AD and the second 784
AH/1382 AD to 922 AH/1517 AD
The second period of the Mamluk empire witnessedchanges in economic, social and political life.
During this time, hyperinflation occured
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the hyperinflation during the Mamluk dynasty is caused by
the monetary system, namely the use of fulus as money.
al-Maqrizi also believe that inflation is also caused by non-
monetary factors such as monopoly and hoarding and rising
cost of production.
Likewise,the Asian financial crisis in 1997, was partly causedby inflationary pressure coming from over-borrowing and over-
spending. Inflation increases cost of production, which in turn
lowers profit. Declining profit also implies lower company
valuation, which reflected itself in lower share prices of the
troubled company.
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(Ighatat al-Ummah bi kashf al-ghummah)
Pre-Islamic times
DuringP
rophet pbuh times
During Umar Al-Khattab times as caliph
During the Umayyad rule
During the end of Abbasid era began debasement
of money
use gold and
silver as
currency
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Egyptians under Fatimid rule used only gold as a
currency
Ayubi took power from Fatimi - he introduced silver
(dirham), keeping gold
in government treasury
Early period of Mamluk dinar and dirhamas currency
Later period began to use fulus (copper) as a currency.
WHY???
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WHY COPPER COINS
WERE USED TOREPLACE DINAR ???
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1. Scarcity of silver (dirham)
International trade Used to make decorative, luxurious
household, palatial and utensils
2. Dinar & Dirham were in short supply
Level of economic activity decline ( )
Alleviate further decline - Govt. began to import large
quantity of copper (cheaper and abundant in supply)
WHY COPPER COINS WERE USED TO
REPLACE DINAR ???
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WHAT ARE THECONSEQUENCES OF
USING FULUS ASCURRENCY ???
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Consequences of using fulus as currency
Prices
1st stage (801 805 H),
- Price but not sharply
2nd
stage (806 814 H)- economic struck by hyperinflation, and widespread ofpoverty.
- inflation become > worse, River Nile failed to reachplentitude (a full supply)
3rd stage
- reintroduction of dirham by Sultan Muayyad whofollowed money reform proposed by Al-Maqrizi
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WHAT ARE AL-MAQRIZIS MONETARY
REFORM ???
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blamed and critized the government
failed to uphold their responsibilities
mismanagement in monetary and failure tomaintain economic stability
this method kills people as they have to suffer
high price of commodities.
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First proposal
using only gold and silver
He recommended that all payment made in
trading (al-bay) and services (wages) must bemade using only gold and silver
For him, many other metal is unsuitable as a
currency
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Second proposal
Forbid the debasement of money
- Use silver dirham to pay wages as well as pricesof goods and services
To guarantee the welfare of the people from theabusing power of government, he stated
The price of 100 dirham of pure andunadultered silver is 6 mithqals of gold, to
which is added dinar at current prices to bepaid to the mint as a fee to cover the price ofcopper, the taxes to sultan, cost of firewood,the wages of workers and the like
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Third proposal
Restricted the use of fulus
He stressed on how much 1 mithqal should be
He stated one mithqal of gold will be exchanged for
24 silver dirham coins. 24 dirham cions is
equivalent to a weight of 140 dirhams incopper coins (fulus)
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Imam al-Maqrizi was so much confident that
by forbidding the debasement of money and
changed with the using of gold and silver and
the welfare of people is guaranteed.
He is very much concern about the welfare of
his people
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He stated in Khitat,
the price of goods under gold and siver
increases slightly but under fulus, price ofgoods increase rapidly
Therefore, gold and silver is easier and
comfort.
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THANK YOU