To some scholars, it seems that practiced Islamic banking is yet to incapsulate the ideals of Islamic economic principles. These scholars caution against mimicking conventional banking products and using the same paradigm to make these products somehow conform to Islamic legal framework.
History of economic man is fascinating. He has used the nature’s blessings to find and create new and innovative ways of maximizing utility. But, nonetheless, at all points in time, he does not feel satiated. He remains poor ‘relatively’ to the limitless desires and nature’s limitations. The dream of being ‘truly apart’ only remains a dream in everyone’s life. But, then, everyone achieves it one day. There is one place that everyone reaches where he is not accompanied by anyone. It’s his or her grave. Belief in life hereafter is the only thing that gives meaning to this world and life.
Time value of money is the problem for the investor to avoid keeping his/her money idle and to avoid forgoing the use of money that may bring positive value to his/her investment. However, it does not mean that the investor can demand an arbitrary increase as the cost of using money without taking the risk of a productive enterprise.
Higher education has become a necessity in current times with the increased competition in labor market and increased demands on keeping up with changing skills set. Nevertheless, the cost of obtaining higher education has also increased a lot in recent times. This article proposes an alternate way for financing higher education without the element of interest.
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.