Evolution of Euro: lessons for Muslim countries

Economic backwardness in Muslim countries is widespread despite being collectively_x000D_ very rich in terms of financial, natural, and human resources. Monetary problems in the form of financial dependency, inflation and speculation are main contributors to lasting economic backwardness in the contemporary Muslim countries. Some Muslim scholars and politicians are now recommending adoption of the gold coinage system in order to overcome these problems. Historically the gold coinage monetary system has been most stable among all the monetary systems practiced so far. But, despite its historic stability, worldwide acceptance of the gold coinage system is not in sight yet. In fact, only a handful of countries may be interested in adoption of the gold coinage system. Therefore, a second best solution is to form of a currency union, adoption of a single currency by a bunch of countries. European Union (EU) has recently formed a currency union by adopting a single currency called euro. Likewise,