Criticism of Gold Money theory

The problems of the monetary and banking structure، especially the existence of chronic inflation in Iran's economy, have caused the alternative theories of the existing monetary and banking structure to receive much attention in the academic and elite environment. One of the alternative theories that tries to present itself as an Islamic theory is the theory of gold money. This theory, which is derived from the theories of the Austrian school of economists, has been accepted by some Muslim scholars. In the book "An introduction to the Theory of Gold money: The Monetary System of Modern Islamic Civilization", the dimensions of this theory and operational system for the implementation of the gold money system have been expressed. This article has criticized gold money theory with an analytical and descriptive method، focusing on the claims made in the above book. The conclusion is reached that the theorists of this theory could not explain their claims in all three parts of proving: 1) proving the Islamic nature of “gold money” based on school principals; 2) the operational processes of gold money and 3) the proof of the efficiency of this method compared to fiat money. It seems that their major problem is the lack of the proper understanding of a monetary structure based on gold.