IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/66741.html
   My bibliography  Save this paper

A Monetary and Financial Structure for an Interest-Free Economy: Institutions, Mechanism & Policy

Author

Abstract

This paper attempts to outline a possible financial structure for an interest-free economy, which would conform to the Islamic principles. The basic characteristics of that economy are not new. Pioneers in Islamic economics have mentioned them previously1. However, they were scattered in many writings and under diverse Topics2. Yet those attempts have opened a path to this topic to be handled in an effective manner.

Suggested Citation

  • Al-Jarhi, Mabid, 1980. "A Monetary and Financial Structure for an Interest-Free Economy: Institutions, Mechanism & Policy," MPRA Paper 66741, University Library of Munich, Germany, revised 2004.
    • Handle: RePEc:pra:mprapa:66741
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/66741/1/MPRA_paper_66741.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul A. Samuelson, 1968. "What Classical and Neoclassical Monetary Theory Really was," Canadian Journal of Economics, Canadian Economics Association, vol. 1(1), pages 1-15, February.
    2. James Tobin, 1968. "Notes on Optimal Monetary Growth," Journal of Political Economy, University of Chicago Press, vol. 76, pages 833-833.
    3. Al-Jarhi, Mabid Ali, 2005. "The Case For Universal Banking As A Component Of Islamic Banking," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 13, pages 2-65.
    4. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    5. Paul A. Samuelson, 1969. "Nonoptimality of Money Holding under Laissez Faire," Canadian Journal of Economics, Canadian Economics Association, vol. 2(2), pages 303-308, May.
    6. Iqbal, Munawar & Al Jarhi, Mabid Ali, 2001. "Islamic Banking: Answers to Some Frequently Asked Questions (Occasional paper)," Occasional Papers 92, The Islamic Research and Teaching Institute (IRTI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:abd:kauiea:v:30:y:2017:i:1:p:3-20 is not listed on IDEAS
    2. Mohsin S. Khan, 1997. "Islamic Interest-Free Banking: A Theoretical Analysis النظام المصرفي الإسلامي الخالي من الفائدة : تحليل نظري ( ترجمة عربية )," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 9(1), pages 3-36, January.
    3. Al-Jarhi, Mabid, 2010. "Reviving the Ethics of Islamic Finance," MPRA Paper 66732, University Library of Munich, Germany, revised 2011.
    4. Mabid Ali Al-Jarhi, 2013. "Gaps in the Theory and Practice of Islamic Economics فجوات في نظرية وتطبيق الاقتصاد الإسلامي," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 26(1), pages 237-248, January.
    5. Mabid Ali al-Jarhi, 1985. "Towards an Islamic Macro Model of Distribution: A Comparative Approach نحو نموذج ماكرو إسلامي للتوزيع: مقاربة مقارنة," Journal of Research in Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 2(2), pages 3-29, January.
    6. Mabid Ali Al-Jarhi, 2020. "Reforming Islamic Finance إصلاح المالية الإسلامية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 33(2), pages 101-107, July.
    7. Monzer Kahf, 2014. "Budget deficit and instruments of public borrowing in the Islamic system," Chapters, in: M. Kabir Hassan & Mervyn K. Lewis (ed.), Handbook on Islam and Economic Life, chapter 27, pages iii-iii, Edward Elgar Publishing.
    8. Hasan, M. Aynul & Siddiqui, Ahmed Naeem, 1994. "Is Equity Financed Budget Deficit Stable In An Interest Free Economy?," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 1, pages 1-14.
    9. Al-Jarhi, Mabid Ali M. M., 2016. "An Economic Theory of Islamic Finance Regulation," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 24, pages 1-44.
    10. Mabid Ali al-Jarhi, 2016. "The Nature of Money in Modern Economy – Implications and Consequences: Stephen Zarlenga and Robert Poteat طبيعة المال في الاقتصاد الحديث - الآثار والتبعات: ستيفن زارلينجا وروبرت بوتيت," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 29(2), pages 75-79, January.
    11. Al-Jarhi, Mabid, 2013. "Gaps in the Theory and Practice of Islamic Economics," MPRA Paper 66716, University Library of Munich, Germany, revised 2013.
    12. Sayyid Tahir, 2017. "Islamic Economics and Prospects for Theoretical and Empirical Research الاقتصاد الإسلامي وآفاق البحوث النظرية والتطبيقية," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 30(1), pages 3-20, January.
    13. Al-Jarhi, Mabid, 2016. "An economic theory of Islamic finance," MPRA Paper 72698, University Library of Munich, Germany.
    14. ALJARHI, Shadia, 2020. "Reforming Islamic Finance," MPRA Paper 103393, University Library of Munich, Germany.
    15. Al-Jarhi, Mabid, 2016. "The Nature of Money in Modern Economy – Implications and Consequences," MPRA Paper 72238, University Library of Munich, Germany, revised 15 Jun 2016.
    16. Al-Jarhi, Mabid, 2004. "The Philosophy of Islamic Banking and Finance," MPRA Paper 66739, University Library of Munich, Germany, revised 2007.
    17. Siddiqi, Mohammad Nejatullah, 2006. "Islamic Banking And Finance In Theory And Practice: A Survey Of State Of The Art," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 13, pages 2-48.
    18. Hasan, M. Aynul & Siddiqui, Ahmed Naeem, 1994. "Is Equity Financed Budget Deficit Stable In An Interest Free Economy?," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 1, pages 1-14.
    19. repec:abd:kauiea:v:26:y:2013:i:1:p:237-248 is not listed on IDEAS
    20. Al-Jarhi, Mabid, 2004. "Islamic Finance: An Equitable and Efficient Option," MPRA Paper 55765, University Library of Munich, Germany.
    21. Al-Jarhi, Mabid, 1985. "Towards an Islamic Macro Model of Distribution: A Comparative Approach," MPRA Paper 66718, University Library of Munich, Germany, revised 1985.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Al-Jarhi, Mabid, 2002. "Macroeconomics: an Islamic Perspective," MPRA Paper 66938, University Library of Munich, Germany, revised 2004.
    2. Bewley, Truman, 1983. "A Difficulty with the Optimum Quantity of Money," Econometrica, Econometric Society, vol. 51(5), pages 1485-1504, September.
    3. Perry Mehrling, 2013. "MIT and Money," GREDEG Working Papers 2013-44, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    5. Al-Jarhi, Mabid, 1979. "نحو نظام نقدي ومالي إسلامي: الهيكل والتطبيق [Towards an Islamic Monetary and Financial System: Structure and Application]," MPRA Paper 83714, University Library of Munich, Germany, revised Feb 1981.
    6. Robert W. Dimand & Harald Hagemann, 2019. "Macroeconomic Dynamics at the Cowles Commission from the 1930s to the 1950s," Cowles Foundation Discussion Papers 2196, Cowles Foundation for Research in Economics, Yale University.
    7. Hong, Claire Yurong & Lu, Xiaomeng & Pan, Jun, 2021. "FinTech adoption and household risk-taking," BOFIT Discussion Papers 14/2021, Bank of Finland Institute for Emerging Economies (BOFIT).
    8. Dipankar Mondal & N. Selvaraju, 2022. "Convexity, two-fund separation and asset ranking in a mean-LPM portfolio selection framework," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 225-248, March.
    9. Lloyd, S. P., 2017. "Unconventional Monetary Policy and the Interest Rate Channel: Signalling and Portfolio Rebalancing," Cambridge Working Papers in Economics 1735, Faculty of Economics, University of Cambridge.
    10. Hany Shawky & Ronald Forbes & Alan Frankle, 1983. "Liquidity Services and Capital Market Equilibrium: The Case for Money Market Mutual Funds," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 6(2), pages 141-152, June.
    11. Radwanski, Juliusz, 2020. "On the Purchasing Power of Money in an Exchange Economy," MPRA Paper 104244, University Library of Munich, Germany.
    12. Michael Finus & Pedro Pintassilgo & Alistair Ulph, 2014. "International Environmental Agreements with Uncertainty, Learning and Risk Aversion," Department of Economics Working Papers 19/14, University of Bath, Department of Economics.
    13. Bohm, Volker & Wenzelburger, Jan, 2005. "On the performance of efficient portfolios," Journal of Economic Dynamics and Control, Elsevier, vol. 29(4), pages 721-740, April.
    14. Derek Bosworth, 1997. "Rivalry and Anticompetitive Practices," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 4(1), pages 97-104.
    15. Howard Bodenhorn, 2016. "Two Centuries of Finance and Growth in the United States, 1790-1980," Working Papers id:11352, eSocialSciences.
    16. Al-Jarhi, Mabid, 2014. "Towards an Economic Theory of Islamic Finance Regulation," MPRA Paper 66744, University Library of Munich, Germany, revised 2014.
    17. Moshe Levy & Haim Levy, 2013. "Prospect Theory: Much Ado About Nothing?," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 7, pages 129-144, World Scientific Publishing Co. Pte. Ltd..
    18. Pelizzon, Loriana & Weber, Guglielmo, 2009. "Efficient portfolios when housing needs change over the life cycle," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2110-2121, November.
    19. Igor V. EVSTIGNEEVY & Thorsten HENS & Klaus Reiner SCHENK-HOPPE, 2010. "An evolutionary financial market model with a risk-free asset," Swiss Finance Institute Research Paper Series 10-36, Swiss Finance Institute.
    20. Charles van Marrewijk, 2004. "An introduction to international money and foreign exchange markets," International Finance 0410006, University Library of Munich, Germany.

    More about this item

    Keywords

    money; banking; interest rate; lending-based processes; productivity-based processes; centered; money issue; allocation of financial resources; fiat money; money creation; fractional reserves; total reserves; money supply; growth; prices; monetary expansion; inflation; consumption; investment; equilibrium.;
    All these keywords.

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:66741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.