The endogenous theory of money and Islamic capital market

The endogenous theory of money contrasts with the quantity theory of money and the Keynesian theory of money supply and demand. The endogenous theory of money is a fundamental element of the concept of money in Islamic economics. This theory not only fits the Islamic economy, it is also necessary to the setup of an Islamic capital market. The OIC and its member nations are responsible for bringing to fruition an Islamic capital market grounded in the endogenous transformation of the monetary systems of Muslim countries. The outcome of the endogenous theory of money is related to the simultaneous establishment of a Shuratic process with strong polity-market interactions. A very basic set of empirical estimations of some features of the endogenous theory of money in relation to the current financial and real economic variables of certain Muslim countries is possible.