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The Financial System and Monetary Policy in an Islamic Economy النظام المالي والسياسة النقدية في اقتصاد إسلامي

Author

Listed:
  • MOHSIN S. KHAN

    (Asst. Director, and Economist, Research Dept.International Monetary Fund, Washington, D.C.)

  • ABBAS MIRAKHOR

    (Economist Research Department, International Monetary Fund, Washington, D.C.)

Abstract

The main characteristics of an Islamic financial system are described relying on recent writings on the subject and on the actual practice of Islamic banking. A theoretical model of an Islamic economic system is developed by generalizing the standard IS-LM model in order to study the effects of monetary policy on the macroeconomic variables of an Islamic economy. Whether the authorities attempt to influence monetary conditions through changing the money supply or use the flow of Mudarabah financing as an intermediate objective, there would be no fundamental change in the way monetary policy affects economic variables. An expansionary monetary policy would reduce rates of return and increase output. يعين البحث الخصائص الرئيسية لنظام مالي إسلامي بالاعتماد على الكتابات المعاصرة وعلى التجربة الحديثة في الأعمال المصرفية الإسلامية. ثم يصوغ نموذجاً نظرياً لنظام اقتصادي إسلامي، من خلال تعميم النموذج التقليدي (IS – LM)، بهدف دارسة آثار السياسة النقدية على المتغيرات الاقتصادية الكلية في اقتصاد إسلامي. وقد انتهى إلى أنه ليس ثمة اختلاف جوهري في الطريقة التي تؤثر بها السياسة النقدية على المتغيرات الكلية، سواء الجأت السلطات النقدية إلى التأثير على الأوضاع النقدية من خلال تغيير عرض النقود، أم باستخدام تدفق التمويل بالمضاربة ( القراض) كهدف متوسط. وخلص البحث إلى أن اتباع سياسة نقدية توسعية ينتظر أن يخفض معدلات العائد ويزيد مستوى الإنتاج.

Suggested Citation

  • Mohsin S. Khan & Abbas Mirakhor, 1989. "The Financial System and Monetary Policy in an Islamic Economy النظام المالي والسياسة النقدية في اقتصاد إسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 1(1), pages 39-57, January.
    • Handle: RePEc:abd:kauiea:v:1:y:1989:i:1:no:2:p:39-57
    DOI: 10.4197/islec.1-1.2
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    References listed on IDEAS

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    1. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    2. Mohsin S. Khan, 1986. "Islamic Interest-Free Banking: A Theoretical Analysis (Le système bancaire islamique: analyse théorique d'un système qui ne fait pas appel à l'intérêt) (La prohibición islámica de los intereses," IMF Staff Papers, Palgrave Macmillan, vol. 33(1), pages 1-27, March.
    3. Pryor, Frederic L., 1985. "The islamic economic system," Journal of Comparative Economics, Elsevier, vol. 9(2), pages 197-223, June.
    4. Ingo Karsten, 1982. "Islam and Financial Intermediation (L'Islam et l'intermédiation financière) (Islamiso e intermediación financiera)," IMF Staff Papers, Palgrave Macmillan, vol. 29(1), pages 108-142, March.
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