MONEY AS MEASURE OF VALUE
scholars is that common medium of exchange need not be a just money or else they will not allow monetary manipulation that is any monetary or fiscal action that reduces quantity of market determined national product basket that symbolizes money that is quantitative measure of value (purchasing power of fiat money). This fraudulent monetary manipulation is same as monetary debasement or reduction in quantity of gold in Proper measurement require the measure to be a defined quantity of what it measures therefore money or common medium of exchange cannot be reliable measure of value unless it is a defined and known quantity of value. Dinar has the value that is same as that of the quantity of gold from that it is minted and thus it is a reliable measure. Prevailing freely floating fiat money is indefinite and variable quantity of wealth therefore it is not a measure of value and it has caused massive loss to the economy by depriving it of justice and efficiency. It is really unfortunate that practically the opinion of majority of our contemporary case of gold coin.
I think we left the golden standard already a lot of decades! Gold is no longer the monetary base.
Gold is also no natural ratio for 'economic value', with respect to prices and payments.
A fixed natural ratio of monetary and (clean) energy units is a possible pathway as money has become access to energy (money can grow on paper by statistical manipulation, while energy resources can physically not).
The evolution of money, since Sumer (where the natural ratio was= barley corns/silver coins), documents that strong fluctuations of the monetary price/value volume did also occur in precious metal currency, e.g. the Spanish-Portuguese 'gold rush' in Latin America caused an inflation in China, at that historical time interval.
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www.sociostudies.org/books/files/k_waves_en_2/pdf/321-325.pdf
Jan Jansen : 10 gm of gold is definitely a known quantity of wealth and therefore your suggestion is not relevant. Purchasing power of everything varies with respect to anything else therefore it is not possible to find have a perfect measure of value. However it does not mean that we should accept an indefinite , undefined and variable quantity of wealth as the measure of value. Those interested in details may refer to my papers available on research gate.
@ Stephen i. Ternyik: a unit of clean energy has value that is highly dependent on technical knowledge that is consistently growing and stability of its purchasing power can not be expected to outperform even normal homogenous commodities. growth of Money by statistical manipulation is subject what is used as money and provisions of law that control monetary system. Also pl refer above. .
Perhaps I misunderstood your question? Are you looking for a kind of numeraire a la Walras? Or is your question based on a weak currency area? Have a look at this publication for the Euro from the ECB https://www.ecb.europa.eu/pub/pdf/other/monetarypolicy2011en.pdf?4004e7099b3dcdbf58d0874f6eab650e
i hold the view that nothing other than common medium of exchange can perform the measure of value function of money, however to perform this function reliably it is essential that it has most stable purchasing power and that does impose some costs that is not significant if its benefits are considered.
Another aspect is that what is not a satisfactory measure of value and unit of account can not be considered to be a Sharia'h compliant money. It is what compels contemporary Muslim Scholars to hold that freely floating fiat money is a shariah compliant measure of value and unit of account but it seems that they do not understand that this is factually incorrect.
Stephen I. Ternyik
A unit of clean energy has value that is highly dependent on technical knowledge that is consistently growing and stability of its purchasing power can not be expected to outperform even normal homogenous commodities and that shows it may not be relied as measure of value.. Growth of Money by statistical manipulation is subject what is used as money and provisions of law that control monetary system. Also please refer to answers on Jan H Jansen's answers .
Hifzur Rab Hifzur Rab With ethical reference to your mentioned monetary concerns and Muslim scholars, the following publication might be of interest to you:
https://www.researchgate.net/publication/311652821_THE_ETHICAL_ECONOMY_OF_SPACE_AND_TIME
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Concerning economic growth and the fiat interest system, the work of JvNeumann is decisive:
https://python-advanced.quantecon.org/von_neumann_model.html
(1 pdf also attached)
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My scientific view and methodical researches,
from the physics of monetary (social) systems,
can detect no way back to the 'yellow brick road'.
www.sociostudies.org/books/files/k_waves_en_2/pdf/321-325.pdf
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However, Prof. JH de Soto supports that, i.e. gold:
https://www.jesushuertadesoto.com/home/
https://www.jesushuertadesoto.com/money-bank-credit-and-economic-cycles-2/
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Especially, his publication on:
https://www.jesushuertadesoto.com/the-theory-of-dynamic-efficiency-2/
is most interesting, with respect to arrive at an optimal monetary system,
which can satisfy ethical (sacred) and economic standards.
In simple words:
growth without monetary manipulation and without pollution is possible.
https://philpapers.org/archive/TERSMA.pdf
Only common medium of exchange that has highly stable purchasing power (with respect to an appropriate measure of value) can discharge measure of value function justly/efficiently however purchasing power of freely floating fiat money is known to fall consistently and appreciably with respect to representative national product basket that is the appropriate measure of purchasing power for it and therefore it is an unreliable measure of value and it is not a reliable/ Shariah compliant measure of value.