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Interest prohibition and financial product innovation

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  • J. A. Bergstra
  • C. A. Middelburg

Abstract

We give a rough sketch of the Judaic, Greek, Islamic and Christian positions in the matter of interest prohibition during the last few millennia and discuss the way in which interest prohibition is dealt with in Islamic finance, the problems with authority-based arguments for interest prohibition, and the prospects of interest prohibition with the advent of electronic money.

Suggested Citation

  • J. A. Bergstra & C. A. Middelburg, 2011. "Interest prohibition and financial product innovation," Papers 1104.2471, arXiv.org.
    • Handle: RePEc:arx:papers:1104.2471
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    References listed on IDEAS

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    1. A. El-Gamal, Mahmoud, 2001. "An Economic Explication of the Prohibition of Gharar in Classical Islamic Jurisprudence," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 8, pages 29-58.
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