Modelling interest-free economy: a study in macro-economics and development

The book is a work divided into seven chapters, the first of which deals with the development of the interest system in the face of the religious, moral, and social unacceptability of the institution. The interest-based system also spread throughout the world as a consequence of the colonialist practices of developed countries. The work's second portion is concerned with the ideas behind Islamic economics and financial operations free of interest. The third chapter is devoted to seeing how a model of an Islamic economy can be constructed. The model is to be drawn from looking at the West. The actual model is constructed in the book's fourth part. Sargent's classical model is adapted. The last three chapters of the volume deal with fiscal and monetary policy within the model, comparative rates of return, and the consequences of both interest and profit sharing approaches. It is seen that Islam enhances growth, equity, and other desirable qualities. By contrast, interest holds back growt