Abstract This study re-investigates the money supply determination process for Japan. The methodology of this study, which differs from previous studies, is constructed on assumption potential nonlinear (asymmetric) relations between and monetary base via multiplier. To aim, autoregressive distributed lag (ARDL) model by Shin, Yu Greenwood-Nimmo, (2014) applied. allows us to examine endogeneity...

The present paper is an attempt to: 1- Demonstrate how money is created (by the nature of the system), and to estimate the inflation resulting from monetary factors in both usurious and non-usurious systems. Operational aspects of Islamic and non-Islamic banking systems are compared. 2- Introduce a corrective term to be added to the multiplier of the supply of money, in order to prevent the und...