Articles

Pakistan's government has shown that it seeks to abolish riba (interest) from the nation's economy. At present, the government's State Provident Funds are kept in interest-bearing debts.

Ethical values and moral concepts lie at the core of the Islamic system of zaka. Certain factors have troubled the international economy in the last half-century. A 'good life,' as understood in modern society, is not a life in which the necessities of life are plentiful; it is a life in which a person may enjoy many frivolous and unneeded industrial goods. The establishment of a prodigal ruling class is an affair that eventually leads, through a chain of events, to the decline of a people.

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

A Riba-free primary financial market can achieve Pareto-optimality. The dominance of the mixed debt/equity system has some implications for deviation from informational efficiency. Risks normally associated with equity returns are definite indicators of risk-aversion on the part of investors.

An inductive approach to Islamic economics examining the degree of Islamic character of economic systems already in existence can be useful because it can show the importance of values in economic development and it lets Muslims benefit from the experience of other religions. The Western ideology of relativism, individualism, and competition is unusual in historical context and somewhat contradictory, partly because its proponents claim to be neutral while they nonetheless make value judgments.

Investment behavior and whether it will decline, uncertainty, and moral hazard are of note in a profit-sharing system. The utilization of a profit-sharing system may in fact lead to an increase in investment. Within these profit-sharing financial arrangements, both lenders and borrowers bear the risks.

Islamic finance and economics use numerous Arabic words. Among the oft-cited ones are:_x000D_ · Halal (permissible)_x000D_ · Haram (prohibited)_x000D_ ·

While Islamic banking has continued to increase in popularity, there has been an insufficient level of research being conducted on these Islamic institutions. To promote research into this area, Harvard University has initiated the Harvard Islamic Finance Information Program (HIFIP), a program that aims to be the largest source for data on Islamic banking and finance. HIFIP has developed a database containing historical and contemporary information on Islamic banking. The Islamic Investment Company of the Gulf (Bahrain) has provided sponsorship to the program.

Interest has a certain role and some consequences on society. A radical change must occur in society to create an economy without any interest. The Islamic theory of capitalism is a realistic one because the production of capital is related to real output. This theory is also a comprehensive one, because of the great number of factors it takes into account, and an ethical one, because there must be equity and no exploitation.