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Macro Consumption Function in an Islamic Framework by Fahim Khan: Comments

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  • Hasan, Zubair

Abstract

This is a critique of an article of M. Fahim Khan pulished in an earlier issue of the same journal It argues that in other economic systems including capitalism too play an important role to mitigate the hardships of the poor but unlike the Islamic system they do not show their impact on income determination. Transfer of income to the poor via zakah will reduce the saving potential of the economy. To what extent this will be neutralized by the rich abstaining from frivolous spending due to the fear of God is uncertain. Hence the macro model of the author to demonstrate the superiority of the Islamic system is not convincing.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3185.

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Date of creation: 1985
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Publication status: Published in JKAU: Islamic Economics, Jeddah 2.2(1985): pp. 79-81
Handle: RePEc:pra:mprapa:3185

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Keywords: Islam and consumption; zakah; israf;

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