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Dialectical Roots for Interest Prohibition Theory

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  • Jan Aldert Bergstra
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    Abstract

    It is argued that arguments for strict prohibition of interests must be based on the use of arguments from authority. This is carried out by first making a survey of so-called dialectical roots for interest prohibition and then demonstrating that for at least one important positive interest bearing financial product, the savings account with interest, its prohibition cannot be inferred from a match with any of these root cases.

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    File URL: http://arxiv.org/pdf/1105.2900
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    Paper provided by arXiv.org in its series Papers with number 1105.2900.

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    Date of creation: May 2011
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    Handle: RePEc:arx:papers:1105.2900

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    Web page: http://arxiv.org/

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    1. Ariss, Rima Turk, 2010. "Competitive conditions in Islamic and conventional banking: A global perspective," Review of Financial Economics, Elsevier, vol. 19(3), pages 101-108, August.
    2. Ekelund, Robert B, Jr & Hebert, Robert F & Tollison, Robert D, 1989. "An Economic Model of the Medieval Church: Usury as a Form of Rent Seeking," Journal of Law, Economics and Organization, Oxford University Press, vol. 5(2), pages 307-31, Fall.
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