Message of Islam invites people of all faiths, race, color, region and gender towards its message of peace, excellence of character and living in harmony with nature and environment.
Universal Ethics and Islam
Inheritance Law of Islam and Women
Islam has given women a share in inheritance. Before Islam, women were not only deprived of that share, but were considered as property to be inherited by men. In Islam, whether a woman is a wife or a mother, a sister or a daughter, she receives a certain share from the wealth of the deceased close relative.
Consumerism and Credit Cards: Implications for Islamic Finance
It is important to pursue financial engineering in innovative ways, but also keeping in view the Ahkam and Maqasid of Shari’ah.
Forex Trade and Islamic Viewpoint
Currencies are originally a medium of exchange and should only be exchanged for personal use in different countries. To make them a tradable commodity only for earning a profit is also against the basic philosophy of Islamic economics – Mufti Taqi Usmani
Some Observations on User Cost of Capital
Interest based financial system discourages investment in socially optimal profitable projects, but which are not favored because of relative cost comparison from the market interest rate. If sales do not increase, it may lead to business cycle fluctuations with unplanned increase in inventories. With increased pressure to service debt, the environmental degradation and human resource exploitation may become common and secondary concerns.
Consumption Smoothing – An Islamic Economics Perspective
It is an empirical observation that people desire to have smooth consumption throughout their lifetimes. Lifecycle consumption hypothesis (LCH) and permanent income hypothesis (PIH) try to explain that in micro-founded framework. Both negate the Keynes assertion that average propensity to consume (APC) falls as income rises. Some micro-economic evidence is also broadly consistent with LCH and PIH, at least in advanced economies.
Behavior of Firms in Islamic Economic Framework
This article takes a brief look at the theory of the firm in Islamic economics and how a firm’s objectives and governing framework is different in Islamic economic framework as compared to the neoclassical and value-neutral economic framework.
Corporate Governance: Agency Conflicts and Islamic Economics
Agency conflict arises when the various parties have different incentives or objectives in a mutual relationship. This article discusses Islamic economics perspective on the agency conflicts.
Wage Differentials or Discrimination: Islamic Perspective
Islam allows wage differentials based on productivity differences, but does not allow discrimination. Furthermore, if wage differentials are because of characteristics that require equitable distribution and access to resources, then, Islam has unique mechanisms that ensure equitable distribution of resources and opportunities.
Risk Aversion And Islamic Financial Economics
The question arises that if people are generally risk averse, are interest based investments and lending not the safest option to these people in which except from default risk, people are safe from fluctuations in payoffs and there is less uncertainty in payoffs. This article discusses how Islamic economic framework incorporates diversity in risk preferences.
Islamic Economics Project 