The Islamic Economy: Analytical Study of the Functioning of the Islamic Economic System

The opening part of the book is concerned with Islam's outlook on economics and with the methods that should be used in approaching economics Islamically. The next portion discusses consumption and Islam's outlook on 'goods.' Attention is then turned to production. The interest rate is addressed. There is discussion regarding Zakah and its rate. Zakah is seen by the author as a disincentive to keep capital idle, for if funds are invested in productive ventures, the profits can act as a counterbalance for the Zakah payments. Marginal analysis is used in a capital framework. The role of banks in the economy is also looked at.