Public Law Studies Quarterly

Money Creation in Light of the Principle of Equality

Document Type : Article

Authors

Seyed Amirhosein Seyedi 1
Hadi Tahan Nazif 2
Mohammad Solimani 3

1 PhD student in public law at Imam Sadiq University (AS), Tehran, Iran

2 Associate Prof., Department of Public and International Law; Faculty of Islamic Studies and Law, Imam Sadiq University (AS), Tehran, Iran

3 Assistant Prof., Department of Monetary and Financial Economics; Faculty of Islamic Studies and Economics, Imam Sadiq University (AS); Tehran, Iran

https://doi.org/10.22059/jplsq.2023.352343.3233
Abstract
The creation of modern money, which is one of the tools for wealth redistribution and strengthening distributive justice, is subject to regulations such as the Banking Monetary Law and is considered a discretionary authority of the central bank. The central bank, as the main institution in creating money and as the guardian of the national currency's value, is obligated to exercise this discretionary authority within the framework of the constitution and ordinary laws while adhering to the principles of good governance; otherwise, it may impose severe economic harms on the people. One of the administrative principles that the institution with discretionary authority must pay attention to is the principle of equality, which should also be considered in the exercise of the authority to create money. In exercising its discretionary authority, the administrative institution must continuously evaluate its performance in relation to the principle of equality and answer the question, "How can the principle of equality be observed in the exercise of the discretionary authority to create money?" The method of this article is descriptive-analytical, and the authors' findings in the research process indicate that although the creation of money does not inherently lead to inequality, the regulations of the banking system in Iran regarding money creation systematically create inequality.

Keywords

money creation
equality
‎redistribution of wealth
‎distributive justice
‎discretionary competence.‎
Subjects

  1. English

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    1. D) Research report
    2. Hosseini Dolatabadi, S. M. (2013). Effects and consequences of money creation of commercial banks. Islamic Council Research Center (In Persian).
Public Law Studies Quarterly
Volume 55, Issue 2 - Serial Number 42
Summer 2025
Summer 2025
Pages 1281-1307

  • Receive Date 16 December 2022
  • Revise Date 23 February 2023
  • Accept Date 22 May 2023

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