Islamic economy began to experience improvement when it's time ,.... rise of Islamic economics
we may forget our economic system first, but with the slogan FIGHT ISLAM IS ESTABLISHING ECONOMIC STRUGGLE AGAINST MEMORY FORGET, God willing, someday victorious Islamic economy .. below me summarize one day before the Muslim economists peikiran ADAM SMITH

Al-Ghazali (450-505 AH / 1058-1111 AD)

A. Curriculum vitae
Full name is Imam Al-Ghazali Abu Hamid Muhammad al-Ghazali. Call, or degree Laqob Zain Al-Ghazali Thusy ath ad Deen is Islam or Hujjatul Hujjatul Islam Abu Hamid. Born in the year 450 AH / 1058 AD Precisely the mid-fifth century Hijri, and died in 505 AH / 1111 AD, exactly on 14 Jumada Thani Ats, Monday at Thus, a city in Khorasan (Iran), his birthplace

Money According to Al-Ghazali

Financial concept of Al-Ghazali is a unique concept because it contains and influential Sufi aspects therein. The financial concept based on its function in the Middle Ages, in the book Ihya 'Ulumuddin in as-Syukru chapter, which talked about money that used humans as blessings from God Almighty, with the barter system.

Origin of Money (Nature of Money)

The history of money according to Al-Ghazali, starting from barter (al-Mufawwadah) to the use of precious metals, ie gold (al-Dzahab) and Silver (al-Fidzah).

a. barter system (barter system)

barter (al-Mufawwadah) carried out by direct exchange of goods with goods. To conduct the exchange of goods by road "substitution" (Muqayyadah), which gives an item needed by others and to obtain the necessary replacement items. Before the exchange with the money to develop, these goods are traded by barter.

By Marilu Hurt, bartering is the exchange of goods with the goods: eggs with fruit, cloth with a basket, and bovine (cow) with a feather.

According to Al-Ghazali in meeting the necessities of life, humans have been doing business through the sale and purchase transactions. He acknowledged that the first trade or sale and purchase have been known to many people, but simple ways that they use is by way of exchange of goods with goods owned by others. Since that time the currency is not there, that just as the currency now.

Al-Ghazali overcome problems with use of the system. The question arises: how making the currency, of any material that is durable and who's making money?

The barter system is basically limited to a few types of goods only. But over time after people familiar with specialization, how to barter more and no longer appropriate, it is difficult to find others who happened at once, namely:

1) have the same item is needed

2) needs what we offer

3) with a value approximately equal or comparable to

4) willing to trade them

so that the barter system was in need of revision, Al-Ghazali then recommends formed so that there is a financial institution which then take care of creation and printing money. And financial institutions as well as a money-making, called Dar al-Darb (printing institute). Functioning as a centralized monetary activity, in order to streamline the functions of state administration.

b. Money Goods (Commodity Money)

Al-Ghazali explicitly say that the clothes, food, animals and other similar items may be exchanged as well as the functions of money. Therefore, the nature of money or commodity money goods are goods used for barter transactions [8]. In the view of Al-Ghazali, every human being needs for goods, food, clothing and other necessities. However, limited them to have it all, so what he had exchanged with other people.

Therefore, the money stuff (Commodity Money) instead of using the barter system is a generalization of the goods that have been agreed upon common to wear. For example, a knife was once used as currency in China. Goods are used (enabled) as the money on condition that easy to wear, carry, and generally become a necessity

c. Coin

The idea of Al-Ghazali with his money evaluation theory can provide a clear picture of the transfer (transformation) of the economic system (transaction) into the barter economy that uses the system of metal currency, namely the dinar and dirham. MakaAl-Ghazali concludes that using money as a prescribed religion, by way of a good bermuamalah is one of the blessings of thanksgiving. Conversely, if not then he did dzalim, even into pengikar (kufr favors).

Functions of Money (function of Money)

According to Al-Ghazali money functions only as:

1. Medium of Exchange (for transaction)
2. Unit of Account

According to conventional thinking money function as follows:

1. Medium of Exchange (unit of currency)
2. Units of Account (unit of measurement)
3. Store of value (store of value)

Medium of Exchange of money into the media to change things from one form to another form, so that money can not be a commodity. Money in liquiditasnya to facilitate as a means for payment in all forms of transactions.

Units of Account money as a measure of the exchange of goods, for example: to find out whether the 5 pieces of clothes together with a cake? Al-Ghazali also said, "Money is like a mirror, the mirror has no color but may reflect the color". Money has no price but the money to reflect any price.

The function of money based on the conventional thinking:

Store of Value is a logical consequence of the recognition of the conventional theory of the motive of money demand for Speculation, Islam explicitly reject these functions. Islam only allows the money used for transactions and as a precaution, but refused to use the money for speculative motives. Al-Ghazali warned, "trade the money is like imprisoning the functions of money. If a lot of money traded, would stay a little money that can function as money."