Articles

The history, philosophy, and goals of Islamic banking may be examined using a comparative analysis of different marketing developments and using an analysis of the degree of applicability between Islamic and conventional banks. The Islamic and conventional banking systems can learn from each other. While conventional banks might come up with mudarabas, musharakas, or other products utilized by Islamic banks, Islamic banks can learn marketing techniques regarding strategic planning, research, and other matters from conventional banks.

Econometric modeling shows that the rate of interest does not have any significant influence on the demand for money and on the investment function in a contemporary Islamic society. Money demand in

Western and Islamic societies have modern social security systems and certain means of dispensing benefits. The ultimate aim of all societies is to maintain a stable and viable social security system for the community's populace. Social security, capitalism, socialism, and social security in

Indonesia and Malaysia have made serious attempts to liberalize their economies in recent years so market forces may play a more active role in the allocation of resources. An assessment of the extent of state intervention in Indonesia and Malaysia may be made by examining the policy environment in these countries and the nature, content, and impact of their economic policy reforms. Some policy lessons may be drawn from the analysis.

Qur'anic economics and orthodox economics may be integrated under the concept of utility maximization. Under a rational-choice principle of economics based on maximization, iman is the guiding principle of a rational

A comparative and mathematically rigorous look at an Islamic financial system based on a variable-return scheme (VRS) verses one based on a fixed-return scheme (FRS) shows that under certain assumptions, such as risk aversion by investors, the Pareto-optimal contract occurs under a variable-return scheme. The reason: a VRS spreads risks far more equitably. In the contemporary world, FRS dominates, in the form of debt contracts. VRS monitoring costs are not prohibitive.

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Early attempts toward the formulation of a humanistic political economy within Islamic societies and the principle of ethical endogeneity are reviewed. This principle demonstrates that society maximizes its social welfare through a consensus of decisionmakers reached within the framework of a choice of goals and policy variables.

Malaysia has an important role in the Islamic markets of the Middle East. Malaysia hopes to become a major force in the Middle East by serving as a catalyst for the return of Japanese companies to the region. Since Japanese corporations have business ties with Malaysia, these links make Malaysia a naturally suitable agent in transactions between Japan and the Middle East.