An evaluation of research onmonetary policy and stability of the Islamic economic system

Other Title(s)

تقييم الأبحاث المتعلقة بالسياسة و الاستقرار المالي لنظام الاقتصاد الإسلامي

Author

Siddiqi, Shamim Ahmad

Source

The 7th International Conference in Islamic economics : thirty years of research in islamic economics solutions and applications of contermporary economic issues 24-26 Rabie Awal 1429 H 1-3 April 2008 G.

Publisher

King Abdulaziz University Islamic Economics Institute

Publication Date

2008-04-30

Country of Publication

Saudi Arabia

No. of Pages

36

Main Subjects

Islamic Studies

English Abstract

One of the key manifestations of Islamization of the contemporary economies had been replacement of interest based banking by a profit and loss sharing banking.

By the end of 1970s the concept of Islamic banking had become quite popular.

However, it was felt that more rigorous analytical research was required to clearly understand the consequences of the new system on savings, investment, stability of the economy, and implications for monetary policy.

This paper critically evaluates some of the important theoretical models developed in this area to address different apprehensions.

It has been noted that although a number of questions related to the new system remained un-answered, research interest in this area declined as Islamic banking failed to use profit and loss sharing modes of finance at a scale that would necessitate any meaningful change in monetary policy and its tools.

Finally, the paper briefly contemplates on some of the reasons for this situation and makes few suggestions for future research.

Language

English

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Data Type

Book chapters

Notes

Includes bibliographical references : p. 266-269

Record ID

BIM-858115