Author

• Mohsen Tarafdar

Abstract

Man has a social existence. His different needs and abilities limitation lead him to
exchange in order to provide his needs. For this purpose, he exchanges his
production surplus with other’s production surplus. In this case, the equal value of
traded goods is to ensure justice. Today, the most transactions are paid with money.
However, these questions come to existence when the price of goods and services
increase and the purchasing power of payrolls decline in Islamic community: What
will be the duty of government dealing with this situation? Can the government set
prices for goods and services and monitor or control them? Will advising people to
forbid the vices and to promote the virtues be enough?
In this paper, the methodology is based on the documents and deductive reasoning,
using original Islamic resources, such as
Quranic
verses and interpretations and also
Imams’
 
 
Hadiths
. This paper shows that Islamic governor should not intervene in
pricing goods and services and the relative abundance and scarcity of goods and
 
services, seasonal conditions and other factors determine prices freely. In the case of
 
abnormal conditions, when the increase in the prices is led to people’s suffering,
 
government should intervene in market affaires and pricing in order to prevent
 
injustice to people. In a normal condition, the Islamic governor’s or his
 
representative’s guidance to people to pay attention to their religious and ethical
 
duties can be effective in ensuring the fairness of prices.
 
 

Keywords

• Inflation
• market
• prices
• Islamic government
• goods and services
• Exchange
• supervision