Monetary and Financial Theory and Institutions
Raises four questions and tries to answer them: (a) What are the differences between an Islamic and a conventional securities market?; (b) What will be the impact of these differences on the developmentof a primary as" well as a secondary financial -market?; (c) What is the Islamic basis for creating a treasury bills market and an inter-bank market?; (d) How to create a ‘sane’ securities market? For economists and bankers. Undocumented.
Paper presented to the Seminar on Islamic Economics held in Cairo from 6-9 September 1988 under the auspices of I.I.I.T., Washington, and University of al-Azhar. Argues that the Muslim countries have tried development models of capitalism and socialism with little success. They should Islamise their economies. They should introduce the dual incentives of price mechanism and moral uplift.They should also introduce major structural changes through public policies. The financial system needs to be based on profit-loss sharing rather than interest. A scholarly paper based on primary sources. For economists. Documented.
Monetary and Financial Theory and Institutions
Monetary and Financial Theory and Institutions
Monetary and Financial Theory and Institutions
Presented to the International Serninar on Fiscal Policy and Development Planning organised by I.I.I.E. at Islamabad in July 1986. Kahf's paper is theoretical. The scope for increasing non-fax revenue in Muslim countries is not great. An expanded public sector is prone to inefficiency and corruption Kahf does not discuss the question of justice in the tax system. Descriptive. For Muslim economists. Undocumented.
For successful Islamisation of banking the following further steps are needed: reduction in wasteful spending, increased equity financing, write-off of bad-debts, equitable distribution of credit through a credit guarantee scheme and growth of non-bank financial intermediaries. Written in layman’s language for general readers.
Monetary and Financial Theory and Institutions
A critical note on M.M. Metawally’s paper (JRIE, 2:1, 1984). Criticises the paper for ignoring considerations of equity. Proposes that the stock market should be reformed by banning future sales, prescribing a 100% margin, insisting on full disclosure, and curbing other unfair trading practices. Descriptive. For economists. Based on primary sources. Documented.
Reviews objections raised on the prohibition of riba by economists. The Islamic system of profit-sharing brings greater efficiency in resource allocation than interest. Sub stitution of interest by profit-sharing would not affect the level of savings adversely. It may help increase the level of capital formation. In a wholly equity-based economy, the economic system would be more stable than the one based on interest, because of the highly erratic behaviour of interest. By turning sources into entrepreneurs and by placing a high premium on hard work, the Islamic system is conducive to high growth. Analytical. For professional economists. Based on primary sources. Documented.
Synthesises monetary economics of Islam. Discusses the objectives and strategy of the Islamic monetary framework. Explains the rationale of abolition of ribd and various alternatives. Proposes an institutional set up: central bank, commercial bank, non-bank financial institutions, deposit insurance corporation, investment audit corporation and stock exchanges. Lays down a strategy for transition to an Islamic economic system. Contains two appendices consisting of extracts from primary sources and discussion on shirka, mudaraba and joint stock corporation. Also contains a glossary of terms. A scholarly work based on primary sources. Analytical. Documented. For economists.
Monetary and Financial Theory and Institutions
Monetary and Financial Theory and Institutions
Monetary and Financial Theory and Institutions
Keynote address at the 20th annual convention of MSA, Bloomington, Indiana (May 1982). A general and broad statement about economic philosophy of capitalism. Briefly explains Islamic answers to: What to produce? How to produce? And for whom to produce? For general readers. Based on primary sources. Documented.