The welfare effects of inflation and financial innovation in a model of economic growth: An Islamic perspective
AbstractConstructs a simple neoclassical growth model in which financial factors play an important role. The model demonstrates that the injunction against fixed interest payments induces the monetary authority in the Islamic economy to develop and innovate alternative financial instruments that do not have fixed nominal values and do not bear predetermined rates of return. The model also proves that financial innovation is welfare enhancing, while inflation reduces welfare and hampers growth. The model further proves that the government in an Islamic economy can effectively coordinate its fiscal and monetary policies to finance the budget using the Zakat and seigniorage.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Economic Studies.
Volume (Year): 29 (2002)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Simplice A, Asongu, 2012.
"Software piracy, inequality and the poor: evidence from Africa,"
43860, University Library of Munich, Germany.
- Asongu Simplice, 2012. "Software piracy, inequality and the poor: evidence from Africa," Working Papers 12/035, African Governance and Development Institute..
- Amir Kia & Ali F. Darrat, 2003. "Modeling Money Demand under the Profit-Sharing Banking Scheme: Evidence on Policy Invariance and Long-Run Stability," Carleton Economic Papers 03-13, Carleton University, Department of Economics, revised Apr 2007.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).
If references are entirely missing, you can add them using this form.