Shariah and Legal Measures to Prevent Inflation: An Exploratory and Comparative Review

Abstract

This research paper examines the Shariah and legal measures to prevent inflation. Inflation is a global economic problem that arises due to various types and causes. From a Shariah perspective, Islam has injunctions against inflation, the prohibition of usury, and the prohibition of hoarding. Rules and regulations have been laid down in the Quran and Hadith to deal with these problems, the purpose of which is the welfare of the people and the establishment of a fair economy. In Islamic economy, price regulation and monetary policies are also determined under the same principles. From a legal perspective, different countries have introduced different laws and policies to curb inflation. In Pakistan, the Price Control, Prevention of Profiteering and Hoarding Act of 1977 provides an important legal framework covering the necessary laws to prevent price fixing, profiteering, and hoarding. This research has highlighted the types of inflation under natural and artificial causes, various measures to prevent them from Shariah and legal point of view, and their comparative analysis. Apart from this, various policy suggestions have been proposed for the prevention of inflation based on the results of the research, which can help in establishing a fair and stable economy.