Indexation of financial assets : an Islamic evaluation

Protection from inflation, as related in Mahmood Ahmad Ghazi's foreword, is a difficulty central to interest-free economics. Currency values have been falling as never before. Purchasing power has been dropping continuously. Indexation, a practice opposed by most Islamic scholars, has been raised as a potential means of dealing with the problem. The author's foreword relates the Council of Islamic Ideology's decision against indexation and the contrary Sindh High Court's ruling that loans be repaid with purchase power indexation. The work is divided into five chapters, the first of which is concerned with the actual methods of indexation and the history of the indexation practice. Brazil is particularly looked at. The second chapter is concerned with the debate on indexaion in the economic sphere. The third chapter is devoted to inflation and its causes, as well as the law of repayments in Islam. The fourth chapter deals with Shari'ah arguments on indexation both for and against it. Th