The indiscriminate creation of money by the government inevitably leads to a devaluation of the national currency. This devaluation triggers a cascade of economic, legal, and social repercussions. Consequently, a thorough examination of the government's liability in this regard is of paramount importance. This research aims to conduct a jurisprudential analysis of the legal grounds for the government's liability regarding the devaluation of the national currency and propose an appropriate methodology for addressing this issue.
The findings of this study indicate that the government is liable for the devaluation of the national currency resulting from the unregulated creation of money. This liability is grounded in two of the four primary causes of liability: harm and waste, which apply to the government's actions. Moreover, the general rule of " The guarantee of a similar good for a similar good, and a specific good for its price " frequently cited in relevant research, is inaccurate. The crucial factor is ensuring fairness like compensation. Additionally, principles such as Ehsan, Amin, and the Vellayate Faqih, often invoked to absolve the government of liability, are incomplete and insufficient to negate government liability. This is because the subject matter of these principles is not directly related to government liability."