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An Evaluation of Research on Monetary Policy and Stability of the Islamic Economic system تقييم الأبحاث المتعلقة بالسياسة والاستقرار المالي لنظام الاقتصاد الإسلامي

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  • Shamim Ahmad Siddiqui

    () (Department of Economics University of Brunei Darussalam)

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 unanswered, 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. لقد مثل اقتراح استبدال النظام المصرفي القائم على الفائدة بنظام بنكي قائم على الربح والخسارة (PLS) واحدة من أهم الوجوه البارزة في عملية "أسلمة" النظم الاقتصادية المعاصرة، فمع نهاية السبعينيات أصبح لمفهوم البنك الإسلامي شعبية كبيرة. في المقابل تطلب هذا الوضع ضرورة القيام بأبحاث تحليلية معمقة لانعكاسات تطبيق هذا النظام على مستويات الادخار، والاستثمار، واستقرار الاقتصاد ثم السياسة المالية. تحاول هذه الورقة القيام بتقييم نقدي لبعض النماذج النظرية التي قدمت في هذا الحقل لمحاولة الوقوف على مساور القلق المختلفة. لقد لوحظ خلال هذه الفترة أنه على الرغم من بقاء العديد من الأسئلة من غير إجابة، إلا أن الأبحاث المتعلقة بـهذا الجانب قد قلَّت نظراً لعدم اعتماد البنوك الإسلامية على آلية الربح والخسارة في أدواتـها المالية بدرجة تتطلب تغييراً معتبراً في السياسة المالية وأدواتـها، وفي الختام تقدم الورقة باختصار بعض التأملات حول أسباب هذه الوضعية مع تقديم توصيات للأبحاث في المستقبل.

Suggested Citation

  • Shamim Ahmad Siddiqui, 2008. "An Evaluation of Research on Monetary Policy and Stability of the Islamic Economic system تقييم الأبحاث المتعلقة بالسياسة والاستقرار المالي لنظام الاقتصاد الإسلامي," Papers and books based on the proceedings of the Conferences organized by the Islamic Economics Institute, KAAU. 51, King Abdulaziz University, Islamic Economics Institute..
    • Handle: RePEc:abd:ieicfp:51
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    1. repec:pje:journl:article1989sumiii is not listed on IDEAS
    2. Hasan, Zubair, 1985. "Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance," MPRA Paper 3013, University Library of Munich, Germany.
    3. Obiyathulla Ismath Bacha, 1995. "Conventional Versus Mudarabah Financing: An Agency Cost Perspective," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 4(2), pages 33-50, DECEMBER.
    4. Mohsen Fardmanesh & Shamim A. Siddiqui, 1994. "Financial Instability and the Share Economy," Eastern Economic Journal, Eastern Economic Association, vol. 20(1), pages 75-84, Winter.
    5. Ahmad, Ziauddin, 1994. "Islamic Banking: State Of The Art," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 2, pages 1-33.
    6. Hamid Zangeneh, 1995. "A Macroeconomic Model of an Interest-free System," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(1), pages 55-68.
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