IDEAS home Printed from https://ideas.repec.org/a/abd/kauiea/v2y1990i1no1p3-23.html
   My bibliography  Save this article

Towards Abolishing the Rate of Interest in Contemporary Islamic Societies نحو إلغاء معدل الفائدة في المجتمعات الإسلامية المعاصرة

Author

Listed:
  • MUKHTARM. METWALLY

    (The International Centre for Middle East , Business and Economic Research)

Abstract

Demand for money and investment function in contemporary Islamic societies is measured through an econometric model to demonstrate that the rate of interest does not play any significant role in their determination. The same technique shows the rate of interest to be a significant determinant of these variables in non-Islamic countries with similar economies. It follows that prohibition of interest in Islam has influenced behaviour in Muslim countries. and that abolishing interest is not going to pose serious problems for them. يستخدم البحث نموذجاً اقتصادياً قياسياً ليقدر دالة الطلب على النقود ودالة الاستثمار في عدد من المجتمعات الإسلامية المعاصرة. ويستنتج ( إحصائياً) أنه لا يظهر لمعدل الفائدة أي دور مهم في تلكما الدالتين. ويطبق البحث الطريقة السابقة نفسها على بلدان غير إسلامية تشابه في اقتصاداتها البلدان الإسلامية، فيجد أن معدل الفائدة له دور معنوي ( إحصائياً) في دوالها المقابلة. يخلص البحث إلى أن تحريم الفائدة في الإسلام قد أثر على السلوك في البلدان المسلمة، وأن إلغاء الفائدة في تلك البلدان لن يؤدي إلى مشكلات صعبة.

Suggested Citation

  • Mukhtarm. Metwally, 1990. "Towards Abolishing the Rate of Interest in Contemporary Islamic Societies نحو إلغاء معدل الفائدة في المجتمعات الإسلامية المعاصرة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 2(1), pages 3-23, January.
    • Handle: RePEc:abd:kauiea:v:2:y:1990:i:1:no:1:p:3-23
    DOI: 10.4197/islec.2-1.1
    as

    Download full text from publisher

    File URL: https://iei.kau.edu.sa/Files/121/Files/153901_02-01-MMetwally.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4197/islec.2-1.1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. William J. Baumol, 1952. "The Transactions Demand for Cash: An Inventory Theoretic Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 66(4), pages 545-556.
    2. Boulakia, Jean David C, 1971. "Ibn Khaldun: A Fourteenth-Century Economist," Journal of Political Economy, University of Chicago Press, vol. 79(5), pages 1105-1118, Sept.-Oct.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Darrat, Ali F. & Al-Mutawa, Ahmed, 1996. "Modelling money demand in the United Arab Emirates," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(1), pages 65-87.
    2. Ali F. Darrat, 1993. "Mukhtar M. Metwally: Towards Abolishing the Rate of Interest in Contemporary Islamic Societies, Comment مختار متولي: نحو إلغاء معدلات الاهتمام في المجتمعات الإسلامية المعاصرة - تعليق: علي ضراط," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 5(1), pages 39-49, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Giorgio Calcagnini & Laura Gardini & Germana Giombini & Edgar S. Carrera, 2022. "Does too much liquidity generate instability?," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 17(1), pages 191-208, January.
    2. Dumas, Bernard & Savioz, Marcel René, 2020. "A Theory of the Nominal Character of Stock Securities," CEPR Discussion Papers 15507, C.E.P.R. Discussion Papers.
    3. Robert Jones & Joseph Ostroy, 1976. "Liquidity as Flexibility," UCLA Economics Working Papers 073, UCLA Department of Economics.
    4. Roberto Tamborini, 2007. "Rescuing the LM (and the money market) in a modern Macro course," Department of Economics Working Papers 0706, Department of Economics, University of Trento, Italia.
    5. Francisco Salas-Molina, 2024. "Fitting random cash management models to data," Papers 2401.08548, arXiv.org.
    6. Bonetto, Federico & Iacopetta, Maurizio, 2019. "A dynamic analysis of nash equilibria in search models with fiat money," Journal of Mathematical Economics, Elsevier, vol. 84(C), pages 207-224.
    7. Xavier Ragot, 2005. "A theory of low inflation in a non Ricardian economy with credit constraints," PSE Working Papers halshs-00590788, HAL.
    8. Fernando Alvarez & Francesco Lippi & Roberto Robatto, 2019. "Cost of Inflation in Inventory Theoretical Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 206-226, April.
    9. Zink, Helmut, 1993. "Stability problems in hyperinflation models," Discussion Papers, Series I 268, University of Konstanz, Department of Economics.
    10. Menzio, Guido & Shi, Shouyong & Sun, Hongfei, 2013. "A monetary theory with non-degenerate distributions," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2266-2312.
    11. ., 2014. "Ibn Khaldun’s theory of development: does it help explain the low performance of the present-day Muslim world?," Chapters, in: Morality and Justice in Islamic Economics and Finance, chapter 4, pages 93-134, Edward Elgar Publishing.
    12. Ozdagli, Ali & Velikov, Mihail, 2020. "Show me the money: The monetary policy risk premium," Journal of Financial Economics, Elsevier, vol. 135(2), pages 320-339.
    13. Milanez Ana, 2020. "Workforce Ageing and Labour Productivity Dynamics," Naše gospodarstvo/Our economy, Sciendo, vol. 66(3), pages 1-13, September.
    14. Emanuele Borgonovo & Stefano Caselli & Alessandra Cillo & Donato Masciandaro, 2018. "Between Cash, Deposit And Bitcoin: Would We Like A Central Bank Digital Currency? Money Demand And Experimental Economics," BAFFI CAREFIN Working Papers 1875, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    15. Javier Gómez P., 1998. "La Demanda Por Dinero En Colombia," Borradores de Economia 2969, Banco de la Republica.
    16. Sakinah Mat Zin & Ahmad Azrin Adnan & Iskandar Hasan Abdullah, 2017. "How Can Ibn Khaldun’s Economic Philosophy Revive the Intellectual Capital of Entrepreneurs," Asian Social Science, Canadian Center of Science and Education, vol. 13(6), pages 164-164, June.
    17. Lucas, Robert E, Jr, 1996. "Nobel Lecture: Monetary Neutrality," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 661-682, August.
    18. Maccini, Louis J. & Moore, Bartholomew & Schaller, Huntley, 2015. "Inventory behavior with permanent sales shocks," Journal of Economic Dynamics and Control, Elsevier, vol. 53(C), pages 290-313.
    19. Mirza Hammad Hassan & Hussain Haroon & Sarwar Ghulam & Habib Haroon, 2024. "Corporate Internationalization and Uncertainty of Cash Holdings: Evidence from an Emerging Market," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 79-95.
    20. Hirokazu Ishise Nao Sudo, 2013. "Inventory-Theoretic Money Demand and Relative Price Dynamics," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(2-3), pages 299-326, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abd:kauiea:v:2:y:1990:i:1:no:1:p:3-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: King Abdulaziz University, Islamic Economics Institute. (email available below). General contact details of provider: https://edirc.repec.org/data/cikausa.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.