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A Monetary and Financial Structure for an Interest-Free Economy: Institutions, Mechanism & Policy

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Abstract

This paper attempts to outline a possible financial structure for an interest-free economy, which would conform to the Islamic principles. The basic characteristics of that economy are not new. Pioneers in Islamic economics have mentioned them previously1. However, they were scattered in many writings and under diverse Topics2. Yet those attempts have opened a path to this topic to be handled in an effective manner.

Suggested Citation

  • Al-Jarhi, Mabid, 1980. "A Monetary and Financial Structure for an Interest-Free Economy: Institutions, Mechanism & Policy," MPRA Paper 66741, University Library of Munich, Germany, revised 2004.
    • Handle: RePEc:pra:mprapa:66741
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    References listed on IDEAS

    as
    1. Paul A. Samuelson, 1968. "What Classical and Neoclassical Monetary Theory Really was," Canadian Journal of Economics, Canadian Economics Association, vol. 1(1), pages 1-15, February.
    2. James Tobin, 1968. "Notes on Optimal Monetary Growth," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 833-833.
    3. Al-Jarhi, Mabid Ali, 2005. "The Case For Universal Banking As A Component Of Islamic Banking," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 13, pages 2-65.
    4. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    5. Paul A. Samuelson, 1969. "Nonoptimality of Money Holding under Laissez Faire," Canadian Journal of Economics, Canadian Economics Association, vol. 2(2), pages 303-308, May.
    6. Iqbal, Munawar & Al Jarhi, Mabid Ali, 2001. "Islamic Banking: Answers to Some Frequently Asked Questions (Occasional paper)," Occasional Papers 92, The Islamic Research and Teaching Institute (IRTI).
    Full references (including those not matched with items on IDEAS)

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    1. repec:abd:kauiea:v:30:y:2017:i:1:p:3-20 is not listed on IDEAS
    2. Mohsin S. Khan, 1997. "Islamic Interest-Free Banking: A Theoretical Analysis النظام المصرفي الإسلامي الخالي من الفائدة : تحليل نظري ( ترجمة عربية )," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 9(1), pages 3-36, January.
    3. Al-Jarhi, Mabid, 2010. "Reviving the Ethics of Islamic Finance," MPRA Paper 66732, University Library of Munich, Germany, revised 2011.
    4. Mabid Ali Al-Jarhi, 2013. "Gaps in the Theory and Practice of Islamic Economics فجوات في نظرية وتطبيق الاقتصاد الإسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 26(1), pages 237-248, January.
    5. Mabid Ali al-Jarhi, 1985. "Towards an Islamic Macro Model of Distribution: A Comparative Approach نحو نموذج ماكرو إسلامي للتوزيع: مقاربة مقارنة," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 2(2), pages 3-29, January.
    6. Mabid Ali Al-Jarhi, 2020. "Reforming Islamic Finance إصلاح المالية الإسلامية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 101-107, July.
    7. Monzer Kahf, 2014. "Budget deficit and instruments of public borrowing in the Islamic system," Chapters, in: M. Kabir Hassan & Mervyn K. Lewis (ed.), Handbook on Islam and Economic Life, chapter 27, pages iii-iii, Edward Elgar Publishing.
    8. Hasan, M. Aynul & Siddiqui, Ahmed Naeem, 1994. "Is Equity Financed Budget Deficit Stable In An Interest Free Economy?," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 1, pages 1-14.
    9. Al-Jarhi, Mabid Ali M. M., 2016. "An Economic Theory of Islamic Finance Regulation," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 24, pages 1-44.
    10. Mabid Ali al-Jarhi, 2016. "The Nature of Money in Modern Economy – Implications and Consequences: Stephen Zarlenga and Robert Poteat طبيعة المال في الاقتصاد الحديث - الآثار والتبعات: ستيفن زارلينجا وروبرت بوتيت," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(2), pages 75-79, January.
    11. Al-Jarhi, Mabid, 2013. "Gaps in the Theory and Practice of Islamic Economics," MPRA Paper 66716, University Library of Munich, Germany, revised 2013.
    12. Sayyid Tahir, 2017. "Islamic Economics and Prospects for Theoretical and Empirical Research الاقتصاد الإسلامي وآفاق البحوث النظرية والتطبيقية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(1), pages 3-20, January.
    13. Al-Jarhi, Mabid, 2016. "An economic theory of Islamic finance," MPRA Paper 72698, University Library of Munich, Germany.
    14. ALJARHI, Shadia, 2020. "Reforming Islamic Finance," MPRA Paper 103393, University Library of Munich, Germany.
    15. Al-Jarhi, Mabid, 2016. "The Nature of Money in Modern Economy – Implications and Consequences," MPRA Paper 72238, University Library of Munich, Germany, revised 15 Jun 2016.
    16. Al-Jarhi, Mabid, 2004. "The Philosophy of Islamic Banking and Finance," MPRA Paper 66739, University Library of Munich, Germany, revised 2007.
    17. Siddiqi, Mohammad Nejatullah, 2006. "Islamic Banking And Finance In Theory And Practice: A Survey Of State Of The Art," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 13, pages 2-48.
    18. Hasan, M. Aynul & Siddiqui, Ahmed Naeem, 1994. "Is Equity Financed Budget Deficit Stable In An Interest Free Economy?," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 1, pages 1-14.
    19. repec:abd:kauiea:v:26:y:2013:i:1:p:237-248 is not listed on IDEAS
    20. Al-Jarhi, Mabid, 2004. "Islamic Finance: An Equitable and Efficient Option," MPRA Paper 55765, University Library of Munich, Germany.
    21. Al-Jarhi, Mabid, 1985. "Towards an Islamic Macro Model of Distribution: A Comparative Approach," MPRA Paper 66718, University Library of Munich, Germany, revised 1985.

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    More about this item

    Keywords

    money; banking; interest rate; lending-based processes; productivity-based processes; centered; money issue; allocation of financial resources; fiat money; money creation; fractional reserves; total reserves; money supply; growth; prices; monetary expansion; inflation; consumption; investment; equilibrium.;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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