RESEARCH ON ISLAMIC ECONOMICS AND FINANCE AND ROLE OF FAITH IN MARKETS AND SOCIETY IN POST MODERN SCIENTIFIC AGE
Opportunity cost is a useful concept in economics. This article tries to explain how this concept is used to justify interest. Then, the article also highlights the problem with this approach.
Abstaining from excessiveness in consumption, usury, speculation, gambling and fraud in trade and by engaging in charitable giving and living one’s life with the realization to be always helpful to the other members of society creates a sea of change if one starts believing in it and practice it.
Unrestrained chase of self-interest, moral relativism, incentive-led economic choices and indifference to collective responsibilities has led to engender societies where economic interests have become the solitary basis of establishing and maintaining relationships.
books on introductory economics seldom use naturally un-achievable aspirations in discussing the so called fundamental economic fact. Most of the essential things are really not scarce at all. Food per capita has actually increased since the 1970s as per Food and Agricultural Organization (FAO) data.
Non-discretionary fiscal policy with automatic stabilizers can help in stabilizing the business cycles. This article discusses how the institution of Zakat can act as automatic stabilizer in an Islamic economic framework.
In Mudarabah, only the Rabb-ul-Maal bears all the financial losses as the sole financial investor. If an Islamic bank enters into a Mudarabah contract as a Rabb-ul-Maal, only the Islamic bank would have to bear all the losses. Disparity in payoffs if loss occurs in Mudarabah is one of the major reasons why Mudarabah is hardly used as a mode of finance in corporate financing.
Islamic Economics Project 