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Interest prohibition and financial product innovation

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

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    File URL: http://arxiv.org/pdf/1104.2471
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    Bibliographic Info

    Paper provided by arXiv.org in its series Papers with number 1104.2471.

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    Date of creation: Apr 2011
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    Publication status: Published in Finance Islamique: Regard(s) sur une Finance Alternative, pages 274--284, Mazars Hadj Ali, 2011
    Handle: RePEc:arx:papers:1104.2471

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    Web page: http://arxiv.org/

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