Islamic Banking and Friedman's Rule
Bibliographic Data
| ID | 9256208 |
|---|---|
| Authors | Mahmood Yousefi (0000-0003-3406-5040, University of Northern Iowa), Ken Mccormick (University of Northern Iowa), Sohrab Abizadeh (0000-0001-9331-0953, University of Winnipeg) |
| Year | 1995 |
| Volume | 53 |
| Issue | 1 |
| Pages | 65-87 |
| Publication date | 1995-03-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Review of Social Economy (JOURNAL) |
| Journal identifiers | ISSN: 0034-6764 • E-ISSN: 1470-1162 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00346769500000003 |
| OpenAlex | W2082260574 |
| Language | EN |
| Citations received | 1 |
| References cited | 19 |
The recent resurgence of Islamic scholarship has revived the ancient controversy concerning the legitimacy of interest payments. It has also fueled a debate about whether a modern economy can exist without interest. In this paper, we review the arguments against interest presented both in Islam and in the West. It is then suggested that there are two ways to achieve a zero interest rate: impose a zero price ceiling in the credit market and suffer the consequences of the resulting market distortions, or conduct monetary policy so as to reach a zero interest rate through the market itself. This latter approach, derived from Friedman's Rule, suggests that Islamic bankingif done properly, may allow Islamic societies to have the best of both worlds, i.e. they can follow their religious precepts without creating serious distortions in their economies. Finally, the recent performance of Islamic Banking in Iran and Pakistan is briefly reviewed
Economics · Financial economics · Interest rate · Islam · Keynesian economics · Legitimacy · Macroeconomics · Monetary economics · Monetary policy · Nominal interest rate · Political science · Positive economics · Real interest rate · Scholarship · Usury · Education and Islamic Studies · Islamic Finance and Banking Studies · Law · Microfinance and Financial Inclusion · Philosophy
The general theory of employment, interest, and money
Islam and capitalism
The Optimum Quantity of Money
The Political and Social Ideas of St. Augustine
The Philosophy of St. Thomas Aquinas
Saving, investment, growth and the cost of financial repression
The Positive Theory of Capital
Marx on Credit, Interest and Financial Instability
Property Rights in Contemporary Islamic Economic Thought
The Economic System in Contemporary Islamic Thought
Islamic Banking
From Buchanan to Khomeini
| Citations per year | 0.03 |
|---|---|
| Citation span | 1995 - 1995 (1) |
| Highly cited | No |