Regarding how Islam solves the problem of inflation, Dr. Monzer Kahf, a prominent economist and counselor stated Hijrah. Arbitration can be imposed by courts and certain rules can be set for it. In my opinion this is the best solution because the effect of inflation on people varies; as some become richer, well-off, and get higher income, others become poorer and get lower income. In loans, and bank deposits, indexation is completely unacceptable, since any indexation in loans is interest.
How does Islam Tackle Inflation?
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