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Relative Stability of Interest-free Economy الاستقرار النسبي في اقتصاد لاربوي

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  • SALIM U. CHISHTI

Abstract

Islamic financial facilities like profit and loss sharing (PLS) are flexible enough to provide built-in stabilizers to the investment process. The amplitude of all phases of the business cycle will be smaller in an Islamic economy compared to advanced capitalist economies where the fixity of the fluctuating short term interest rates account for the unstable and cyclical behaviour of investment. This is demonstrated by emphasising the dependence of investment decisions on financing and capital valuation (following Gordon, Tobin, and Minsky) then using a qualitative model of two differential equations to express financing conditions and investment behaviour. PLS financing makes payment commitments a function of cash flows and strongly discourages the financing of speculative borrowers - thus, eliminating the main sources of volatility in capitalist economies. إن تسهيلات التمويل الإسلامية، كالمشاركة في الأرباح والخسائر مثلاً، مرنة إلى قدر يجعلها عوامل استقرار ذاتي في عملية الاستثمار. وإن سعة الدورة (مدى التقلب) في مختلف أطوار الدورة التجارية ستكون أقل في اقتصاد إسلامي منها في اقتصاد رأسمالي متقدم. وقد توصلنا إلى هذه النتيجة الأساسية بالانطلاق من عدد من النظريات الحديثة التي تؤكد اعتماد قرارات الاستثمار على اعتبارات تمويل وتقويم رأس المال (كنظريات غوردن وتوبن، وبخاصة منسكي)، وباستخدام نموذج رياضي نوعي (غير كمي) من معادلتين تفاضليتين تمثلان شروط التمويل والسلوك الاستثماري. ويبدو أن ثبات الالتزامات المالية - في حالة التمويل بالفائدة - مع تقلب الإيرادات، هو سبب للتقلب وعدم الاستقرار في الاستثمار، بينما يربط التمويل الإسلامي الالتزامات المالية بما يحققه المشروع فعلاً، كما أنه يُثبّط كثيراً تمويل المضاربات المغامرة، وبذلك يستبعد مصادر رئيسية لتقلب الاستثمار في الاقتصاد الرأسمالي.

Suggested Citation

  • Salim U. Chishti, 1985. "Relative Stability of Interest-free Economy الاستقرار النسبي في اقتصاد لاربوي," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 3(1), pages 3-12, January.
    • Handle: RePEc:abd:crieja:v:3:y:1985:i:1:no:1:p:3-12
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    1. Ghozali Maski & An'im Kafabih & Arif Hoetoro, 2018. "Testing Profit and Loss Sharing to Stabilise Level of Inflation: Evidence From Indonesia," Research in World Economy, Research in World Economy, Sciedu Press, vol. 9(2), pages 12-23, June.
    2. Hadian , Mehdi, 2017. "Islamic Finance and the Fluctuations of Investment and Output: The Role of Monetary Policy," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 12(3), pages 277-293, July.
    3. Khadidja Khaldi & Amina Hamdouni, 2018. "Islamic Financial Intermediation Compared to Ribaoui Financial Intermediation: A Theoretical and Mathematical Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 268-283.
    4. ., 2014. "The case against interest: is it compelling?," Chapters, in: Morality and Justice in Islamic Economics and Finance, chapter 5, pages 137-162, Edward Elgar Publishing.

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