Tag Archives: Public Policy

Achieving Market-Led Growth in Islamic Economic Framework

Salman Ahmed Shaikh Islmic economic framework does not argue for a state-led or state-run economy. In fact, Islamic economic principles are very much open and favorable towards market based economy. By enabling market economy to run competitively, an Islamic economy … Continue reading

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Effects of Islamic Inheritance Laws on Wealth Inequality

Salman Ahmed Shaikh In an interest based financial system, wealth inequality automatically results in income inequality with legal permissibility of risk-less earnings for the lender. Hence, wealth inequality perpetuates and concentration of wealth increases in the society with the passage … Continue reading

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Development from Islamic Economics Perspective

Salman Ahmed Shaikh In neoclassical growth theories, the emphasis is on increasing savings and technological progress which brings about increase in capital per worker and eventually output per worker. In ‘endogenous growth theory’ models, more sophisticated work has been done … Continue reading

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Analysis of Ethical Dimension of the Great Recession (2007-2010)

Salman Ahmed Shaikh The negative effects of ethical emptiness in Capitalism have become more prominent in contemporary economic and financial crises. Lack of an ethical base, unrestrained pursuit of self-interest in production as well as in consumption and interest based … Continue reading

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A Brief Note on Automatic Stabilizers in Islamic Economic Framework

Salman Ahmed Shaikh Non-discretionary fiscal policy with automatic stabilizers can help in stabilizing the business cycles. Below, we discuss how the institution of Zakat can act as automatic stabilizer in an Islamic economic framework. Institution of Zakat as Automatic Stabilizer … Continue reading

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