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Examining the value of money in turkey over the long term (1469-2009)

Abdullah, Adam (2013) Examining the value of money in turkey over the long term (1469-2009). Asian Social Science, 9 (17). pp. 187-208. ISSN 1911-2017

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Abstract

This paper aims to examine the tremendous loss of value of money over the long term during the Ottoman Empire and the Republic of Turkey between 1469-2009. By 1844, 1.1 Ottoman lira exchanged for one English pound, but in 2005, 1.5 million Turkish lira exchanged for one U.S. dollar. By critically examining the value and purchasing power of money in Ottoman-Turkey, this paper compares empirical evidence and statistics through long term analysis of silver and commodity price indices, as to which medium of exchange provides for the best store of value. This paper discovers that monetary policy should not target stable prices, by managing the quantity or purchasing power of money, but instead adopt a monetary theory of value involving a stable currency, free of monetary management, permitting a stable purchasing power and thus stable prices.

Item Type: Article (Journal)
Additional Information: 7452/44665
Uncontrolled Keywords: silver price, commodity prices, value of money, purchasing power of money
Subjects: H Social Sciences > HB Economic Theory
Kulliyyahs/Centres/Divisions/Institutes: Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Adam Abdullah
Date Deposited: 14 Sep 2015 10:09
Last Modified: 14 Sep 2015 10:09
URI: http://irep.iium.edu.my/id/eprint/44665

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