There are many methodological approaches put forward by esteemed economists in Islamic economics. These approaches include the circular economy approach, moral economy approach, institutional approach, assimilative approach and pure transformative approach.
This paper discusses the theory of interest espoused by Böhm-Bawerk. The author reviews the works of some Muslim economists who think that since time preference is valid in Islam, so is time value of money. In Islamic finance literature, there is largely a consensus that time value of money is not valid, but the time value of commodity is acceptable.
Zakat helps poor to meet their essential needs even in an inflationary environment. Contrarily, higher indirect taxation results in inflation. However, Ushr, which is a form of Zakat would produce results otherwise by helping poor and needy people who are affected the most from inflation.
The discussions in the forum emphasized on creating synergy between Zakat and Waqf and integrate both the institutions together in institutional design and delivery as well as in public and social policy in member countries.
The monetary policy until today is conducted without paying any heed to the socioeconomic consequences. Despite the fact that central banks usually have very strong research wings and they are equipped with lots of resources, it is rare to find a study administered by central banks and relating the monetary policy to the socioeconomic indicators except for employment and growth.
When a person is helped by a co-worker, neighbour, friend or any other individual in confidentiality, the ego and self-respect of the receiving individual is not hurt or hurt as much as in receiving such benefits publicly from an institution.
It is important that debt relief and debt concessions are afforded to them so that their fiscal bleeding does not compromise work and progress on SDGs. As focus shifts to growth to regenerate employment for those who lost employment after the emergence of COVID-19, it is pertinent to not lose focus of SDGs.
There is need for an economic framework that brings moderation, responsibility, conservation, dignity of life, empathy, sharing, equitable distribution and justice in society.
IPS signed a Memorandum of Understanding (MoU) on December 27, 2021 with Islamic Economics Project (IEP). MoU will facilitate both organizations to collaborate in holding and promoting joint online and on-ground events, details of which will be covered and reported on the websites of both organizations as well as in Moral Reflections on Economics – a monthly online publication of IEP.
The paper discusses reforms in monetary policy to reorient it towards serving the needs of real economy. It focuses on reforms that can be introduced in the transitional phase since reconceptualising the whole monetary system with a reformed outlook on nature of currency, mode of currency issue, money creation and credit creation would take much longer time and requires greater political will.