Description
Gain deeper insight into the principles and theory of Islamic economics
Introduction to Islamic Economics: Theory and Application provides an overview of the organizing principles and fundamentals of an Islamic economy. With deep discussion of the characteristics, rationale, key institutions, objectives, and instruments at work, the book addresses the core economic principles underlying a system based on the foundational teachings of Islam, and examines the implications for economic policies. Social welfare, economic justice, market functionality, efficiency, and equity are explored from an Islamic perspective, and the role and instruments of fiscal and monetary policy in Islamic systems are used to illustrate contemporary applications.
Universities around the globe are offering courses on Islamic economics and finance, but despite the industry's rapid growth, most research has been focused on the financial principles rather than underlying economic principles. The first book of its kind, Introduction to Islamic Economics brings all the key concepts together into one reference volume. By outlining the ways in which Islamic finance and Islamic economics interrelate, this book can help readers to:
- Develop an understanding of the Islamic economic system and its institutional scaffolding
- Differentiate between the major characteristics of the dominant conventional economy and one based on the fundamental sources of Islam
- Understand the conditions that must be met for a just, well-balanced, stable, and growing economy
- Clarify the role of State, public policy, and risk-sharing in the Islamic financial system
The Islamic financial system is expanding quickly, and those looking to increase their relevance in a changing economic landscape must get up to speed. Introduction to Islamic Economics provides a comprehensive overview of underlying economic system offering a deeper understanding of the feature of the system. This book is an excellent complement to Introduction to Islamic Finance, 2E by Iqbal and Mirakhor.
Chapter
Irrational Assumption of Rational Self-Interest
Negative Impact on Environment
Islamic Economics Paradigm
Short History of Economic Thought in Islam
2. Foundation of the Islamic Economic Paradigm
Meta-Framework and Archetype of Economic Rules
Implications of the Agent-Trustee Relationship
Significance of Rule Compliance
Rationality and Freedom of Choice
Individual Obligations, Rights, and Self-Interest
Central Notion of Justice
3. Institutional Framework and Key Institutions
Contracts and Contractual Obligations
Markets: The Code of Conduct
Wealth Accumulation and Utilization
Wealth Distribution and Redistribution
Competition and Cooperation
4. The Islamic Economic System
Social and Economic Justice
Justice in Exchange (Economic Transactions)
Prohibition of Interest (Al-Riba)
Risk-Sharing Economic System
5. Key Microeconomic Concepts
Issue of Needs versus Wants
Risk and Profit-Sharing Feature
Dynamics of Demand and Supply
6. Key Macroeconomics Concepts
Principal Economic Agents
Consumption, Savings, Investment, and National Income
Determination
National Income and Output Determination
Open Economy: Trade in Goods and Services with
Other Countries
Why International Trade Is So Central to Islam
Classical Theories of International Trade
Implications of Islamic Teachings for International Trade and Economic Integration
7. Macroeconomic Equilibrium: Characteristics of an Islamic Economy
Models of an Interest-Free Economy
Building Blocks of the Islamic Financial System
Distinctive Features of the Islamic Mode of Intermediation and Banking
Securitized-Asset-Linked Securities-Markets
Takaful (Islamic Insurance)
Primary, Secondary, and Money Markets
9. Role of the State and Public Policy
Basic Roles of the State in All Economic Systems
Role of the State in the Islamic Economic System
Policy Instruments of the State in Islam
Economic Justice and Public Policy
Monetary and Fiscal Policy
Public Policy and Societal Risk Management
Fiscal Policy in an Islamic Economy
Case for National Participation Paper
Monetary Policy in an Islamic Economy
Choice of Islamic Monetary Instrument
Choice of Direct Instruments
Choice of Indirect Instruments
Government Securities and Open Market Operations
Equity-Based Government Securities
Open Market-Type Operations
12. Economic Development and Growth
Evolution of Western Economic Thought: From Smith
to North and Sen
Foundation and Framework of Development and Growth
in Islam
Dimensions of Development in Islam
Distribution Justice, the Market, and the State
Islamic Perspective on Financial Inclusion
Risk Sharing and Wealth Redistribution
13. Economic and Social Welfare
Social Safety Net Provisions
Concept of Safety Net and Welfare
Empirical Evidence on Social Welfare from Select
Muslim Countries
14. Economic State of Affairs in OIC Countries
Public Policy in the Islamic Economic System
Dimensions of Economic and Social Achievements
in Muslim Countries
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