Tag: Economics

Islamic Banking and Conventional Banking During COVID-19 Crisis

If the virus had been growing at a linear rate, it would not have been that much dangerous. It is the exponential increase in the Corona Virus spread which makes it become uncontrollable and create havoc in the society. Compound interest in the financial system is such a Corona Virus. Interest accrued but unpaid increases interest in the future periods ahead at an exponential rate.

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Questions in Islamic Economics: Connecting Spiritual Growth to Economic Theory

Many professionals today experience a dilemma where they must make a choice between being good humans and being good at their job. They are left to wonder how the principles of love, generosity, fairness, reciprocity, and trust that they know to be true about life in general, do not apply at work. Some resort to the unfortunate conclusion that cold selfish behaviour is “natural” for human beings in economic situations. This is false. One of the prime reasons for moral listlessness at the workplace lies buried in mainstream economic theory.

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Corona Virus and Free Market Economics

Mainstream economics treats altruism as ‘impure’. It looks at altruism in the paradigm of pursuing self-interest. Economists like Andreoni reason that altruism can be explained through the ‘warm glow’ effect. People feel good to help others as they gain personal and private comfort. They might be doing it because of social pressure, to gain fame, to improve social image, to exhibit status or to avoid the guilt of saying no to a cause in public. The paradigm of self-interest is neutral between a person’s decision to help others or to not help others.

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Reflections on the Outbreak and Effects of Corona Virus

Reflections on the Origins in the Post COVID-19 World

The doctors and nurses who have risked their lives to treat patients have defied these explanations and proved that altruism can be genuine. The idea of selfish self-interest needs revision. John Nash gave the idea that everybody does what’s best for him and the group. Referring to humans as a group, Dawkins think that Selfish Gene has no inherent morals and only has survival instincts. Morality is then just an instrument to achieve survival of the fittest.

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Concept of Wealth in Islamic Economics

Islamic economics enables a Muslim society to achieve certain ends. It is not so difficult to understand that material resources are required in order to achieve the objectives or Maqasid of Shariah namely “preservation and protection” of Deen, Life, Family and Intellect. The purpose of Divine Law is to make mankind successful in Akhirah. Therefore protection of the religious and spiritual status of the mankind is the prime objective of Shariah. The remaining objectives are also meant to help toward achieving this bigger goal.

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Advertising in Presence of Product Differentiation: Outlining Islamic Etiquette

A market in which there are many producers serving differentiable products is known as monopolistic competition. In this market type, often producers adopt certain marketing strategies and execute marketing plans to increase their product’s appeal, demand and hence increase the sales and thereby profits. It also helps them to create brand loyalty for their products. From an Islamic perspective, there are certain principles and broad guidelines that must be followed and taken care of while advertising the products.

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