... org! Please update your bookmarks. TOWARD A THEORY OF AGGREGATE OUTPUT, INCOME, AND ECONOMIC ... more ... org! Please update your bookmarks. TOWARD A THEORY OF AGGREGATE OUTPUT, INCOME, AND ECONOMIC INEQUALITIES. Sayyid Tahir. IIUM Journal of Economics and Management, 1989, vol. 2, issue 2, pages 95-108. ...
This paper explicates the methodology followed by the Prophet SAAWS for elimination of riba durin... more This paper explicates the methodology followed by the Prophet SAAWS for elimination of riba during his lifetime, with reference to the Qur'an and the Hadith. It then draws inferences for a strategy that may be followed for elimination of riba with special reference to Pakistan. It also states specific measures as well as line of Pakistan for Islamizing the banking, including how to handle the issue of existing debts.
International Journal of Economics, Management and Accounting, 1989
Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islami... more Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islamic Economy
The ‗Divine Will on Ribā' means what Allah SWT (Subḥanahū Wa Taʿāla) desires the believers to do ... more The ‗Divine Will on Ribā' means what Allah SWT (Subḥanahū Wa Taʿāla) desires the believers to do through His dislike, condemnation and prohibition of ribā in the Qurãn. This study investigates this matter. It represents a departure from the dominant tradition that focuses on what ribā is. Methodology of analysis is explained at the outset. Data from the Qurãn are reproduced. A preliminary conclusion is first drawn as to what the Basic Edict on ribā in the Qurãn is. That is then refined by closely examining the communication style in the Qurãn and bringing into the picture the Sunnah of the Prophet SAAWS (ṢalAllaho ʿAlaihay Wa Sallam) traceable to selected Aḥadīth on ribā. Final conclusion on the ‗Divine Will on Ribā' is this: all loans, debts and similar other exchanges must be settled on an equal basis (in terms of units of the object of exchange), and there should not be even an indirect violation of this principle. The study also explains the ḥikmah (Divine Wisdom) and practical implications of the Divine Will.
This paper examines the nature, scope and methodology of Islamic economics, and draws attention t... more This paper examines the nature, scope and methodology of Islamic economics, and draws attention to some possibilities for theoretical and empirical research in this field. Islamic economics is defined as the systematic study of the problem of allocation of resources, production of goods and services and distribution of output, income and wealth in an economy in the light of the Qur'ān and the Sunnah. It has relevance for not only Muslims but also others interested in durable solutions to problems of financial crises, inflation, unemployment, poverty and economic inequalities. The discipline is concerned with the description (of ground realities) and prescription (of solutions for economic issues) in the light of the leads in the Qur'ān and the Sunnah. The Sharīʿah basis of Islamic economics, with a supportive role for fiqh, holds the key in building Islamic economics. The approach recommended for this purpose is reconstruction of Islamic economics rather than Islamization of economics. On the theoretical side, this paper lays emphasis on basic research for strengthening the theory of Islamic economics to fill the knowledge gap on, among other things, Islamic economic system, Islamic economy, the Sharīʿahbased transactions matrix, nature and role of government in modern times and review of economic policy agenda. On the empirical side, it highlights some matters related to data and empirical work.
Islamic finance literacy has become critical for the future growth of the Islamic financial secto... more Islamic finance literacy has become critical for the future growth of the Islamic financial sector in the twenty-first century. While a multi-pronged approach is called for, the focus in this paper is on the undergraduate programs in Islamic banking and finance. It analyses the state of teaching of Islamic banking and finance at the undergraduate level and proposes solutions for improving the undergraduate education of Islamic banking and finance
This paper summarizes salient features of the existing thinking on fiscal and monetary policies i... more This paper summarizes salient features of the existing thinking on fiscal and monetary policies in the Islamic economics literature. It outlines institutional framework for these policies from the Islamic economics perspective. The nature and role of government, in the light of the Shar ah principles, are revisited. The general goals for macroeconomic policies are discussed along with separate goals for each of the two policies. The argument is capped with a look at practical considerations in the actual working of both the policies. The following are the main points in the paper. (1) Roles of both the policies shall be complementary in the context of the overall objectives at the state level. (2) Thrust of both policies would be different from that presently recognized. These conclusions are drawn in the context of the government's role being limited to prudent governance and the society's economic and distributional concerns being addressed as much as possible without adopting the budgetary channel.
This paper summarizes salient features of the existing thinking on fiscal and monetary policies i... more This paper summarizes salient features of the existing thinking on fiscal and monetary policies in the Islamic economics literature. It outlines institutional framework for these policies from the Islamic economics perspective. The nature and role of government, in the light of the Shariʽah principles, are revisited. The general goals for macroeconomic policies are discussed along with separate goals for each of the two policies. The argument is capped with a look at practical considerations in the actual working of both the policies. The following are the main points in the paper. (1) Roles of both the policies shall be complementary in the context of the overall objectives at the state level. (2) Thrust of both policies would be different from that presently recognized. These conclusions are drawn in the context of the government’s role being limited to prudent governance and the society’s economic and distributional concerns being addressed as much as possible without adopting the budgetary channel.
This work seeks to present alternatives to the existing murabahah-, salam-, istisnā-, ijarah-, mu... more This work seeks to present alternatives to the existing murabahah-, salam-, istisnā-, ijarah-, musharakah- and diminishing musharakah-based financing instruments for financing by Islamic banks in the various sectors of the economy. The proposals made here have the distinguishing features that the financing structures are free from wad (promise), and involve less complicated contractual arrangements. The study also spells out a strategy for designing of Shari’ah-based financing instruments for retail banking with implications for building Shari’ah-based—not merely Shari’ah-compliant—financial structures. It also dwells upon institutional arrangements for getting the best out of the Shar’ah-based banking. Islamic Research and Training Institute P.O. Box 9201, Jeddah 21413, Kingdom of Saudi Arabia IRTI
This article is a chronological study of the Ayat on riba. It explains the legislative process on... more This article is a chronological study of the Ayat on riba. It explains the legislative process on riba in the light of the Ayat on riba that were revealed on five occasions: 5 years before the Hijrah (Surah ar-Room, 30: 39), shortly after the Hijrah (Surah an-Nisaa', 4: 160-162), Shawwal 3AH (Surah Aale 'Imran, 3: 130-136), late 3AH or early 4AH (Surah al-Baqarah 2: 275-277) and sometime in late 9AH or 10AH before Hajjat-ul-Wida'. Backgrounds of the said Revealations the linkages between them are also explained.
Journal of King Abdulaziz University-islamic Economics, 2017
This paper examines the nature, scope and methodology of Islamic economics, and draws attention t... more This paper examines the nature, scope and methodology of Islamic economics, and draws attention to some possibilities for theoretical and empirical research in this field. Islamic economics is defined as the systematic study of the problem of allocation of resources, production of goods and services and distribution of output, income and wealth in an economy in the light of the Qur'ān and the Sunnah. It has relevance for not only Muslims but also others interested in durable solutions to problems of financial crises, inflation, unemployment, poverty and economic inequalities. The discipline is concerned with the description (of ground realities) and prescription (of solutions for economic issues) in the light of the leads in the Qur'ān and the Sunnah. The Sharīʿah basis of Islamic economics, with a supportive role for fiqh, holds the key in building Islamic economics. The approach recommended for this purpose is reconstruction of Islamic economics rather than Islamization of economics. On the theoretical side, this paper lays emphasis on basic research for strengthening the theory of Islamic economics to fill the knowledge gap on, among other things, Islamic economic system, Islamic economy, the Sharīʿahbased transactions matrix, nature and role of government in modern times and review of economic policy agenda. On the empirical side, it highlights some matters related to data and empirical work.
This paper builds a simple macroeconomic model for a closed Islamic economy. The model focuses on... more This paper builds a simple macroeconomic model for a closed Islamic economy. The model focuses on not only determination of aggregate output and income (as in conventional macroeconomics) but also the determination of inequality in the determination of aggregate disposable income between the poor (the have-nots) and the rich (the haves). Policy multipliers are also calculated. On the economic policy side, the results establish that Islamization of an otherwise non-Islamic economy through the introduction of zakah, will lead to increase in aggregate output and income but the end result may be either way for the degree of income equality
Analysis of poverty and income inequality has a long tradition in Pakistan. This study breaks som... more Analysis of poverty and income inequality has a long tradition in Pakistan. This study breaks some fresh ground in a number of respects. Following the summary of the economic background in chapter I, a consistent series of poverty estimates from 1963/64 to 1993/94 (14 observations) is developed in order to
Political Economy - Development: Public Service Delivery eJournal, 2009
Islamic finance literacy has become critical for the future growth of the Islamic financial secto... more Islamic finance literacy has become critical for the future growth of the Islamic financial sector in the twenty-first century. While a multi-pronged approach is called for, the focus in this paper is on the undergraduate programs in Islamic banking and finance. It analyses the state of teaching of Islamic banking and finance at the undergraduate level and proposes solutions for improving the undergraduate education of Islamic banking and finance.
International Journal of Economics, Management and Accounting, 1989
Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islami... more Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islamic Economy
This paper summarizes salient features of the existing thinking on fiscal and monetary policies i... more This paper summarizes salient features of the existing thinking on fiscal and monetary policies in the Islamic economics literature. It outlines institutional framework for these policies from the Islamic economics perspective. The nature and role of government, in the light of the Shariʽah principles, are revisited. The general goals for macroeconomic policies are discussed along with separate goals for each of the two policies. The argument is capped with a look at practical considerations in the actual working of both the policies. The following are the main points in the paper. (1) Roles of both the policies shall be complementary in the context of the overall objectives at the state level. (2) Thrust of both policies would be different from that presently recognized. These conclusions are drawn in the context of the government’s role being limited to prudent governance and the society’s economic and distributional concerns being addressed as much as possible without adopting th...
... org! Please update your bookmarks. TOWARD A THEORY OF AGGREGATE OUTPUT, INCOME, AND ECONOMIC ... more ... org! Please update your bookmarks. TOWARD A THEORY OF AGGREGATE OUTPUT, INCOME, AND ECONOMIC INEQUALITIES. Sayyid Tahir. IIUM Journal of Economics and Management, 1989, vol. 2, issue 2, pages 95-108. ...
This paper explicates the methodology followed by the Prophet SAAWS for elimination of riba durin... more This paper explicates the methodology followed by the Prophet SAAWS for elimination of riba during his lifetime, with reference to the Qur'an and the Hadith. It then draws inferences for a strategy that may be followed for elimination of riba with special reference to Pakistan. It also states specific measures as well as line of Pakistan for Islamizing the banking, including how to handle the issue of existing debts.
International Journal of Economics, Management and Accounting, 1989
Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islami... more Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islamic Economy
The ‗Divine Will on Ribā' means what Allah SWT (Subḥanahū Wa Taʿāla) desires the believers to do ... more The ‗Divine Will on Ribā' means what Allah SWT (Subḥanahū Wa Taʿāla) desires the believers to do through His dislike, condemnation and prohibition of ribā in the Qurãn. This study investigates this matter. It represents a departure from the dominant tradition that focuses on what ribā is. Methodology of analysis is explained at the outset. Data from the Qurãn are reproduced. A preliminary conclusion is first drawn as to what the Basic Edict on ribā in the Qurãn is. That is then refined by closely examining the communication style in the Qurãn and bringing into the picture the Sunnah of the Prophet SAAWS (ṢalAllaho ʿAlaihay Wa Sallam) traceable to selected Aḥadīth on ribā. Final conclusion on the ‗Divine Will on Ribā' is this: all loans, debts and similar other exchanges must be settled on an equal basis (in terms of units of the object of exchange), and there should not be even an indirect violation of this principle. The study also explains the ḥikmah (Divine Wisdom) and practical implications of the Divine Will.
This paper examines the nature, scope and methodology of Islamic economics, and draws attention t... more This paper examines the nature, scope and methodology of Islamic economics, and draws attention to some possibilities for theoretical and empirical research in this field. Islamic economics is defined as the systematic study of the problem of allocation of resources, production of goods and services and distribution of output, income and wealth in an economy in the light of the Qur'ān and the Sunnah. It has relevance for not only Muslims but also others interested in durable solutions to problems of financial crises, inflation, unemployment, poverty and economic inequalities. The discipline is concerned with the description (of ground realities) and prescription (of solutions for economic issues) in the light of the leads in the Qur'ān and the Sunnah. The Sharīʿah basis of Islamic economics, with a supportive role for fiqh, holds the key in building Islamic economics. The approach recommended for this purpose is reconstruction of Islamic economics rather than Islamization of economics. On the theoretical side, this paper lays emphasis on basic research for strengthening the theory of Islamic economics to fill the knowledge gap on, among other things, Islamic economic system, Islamic economy, the Sharīʿahbased transactions matrix, nature and role of government in modern times and review of economic policy agenda. On the empirical side, it highlights some matters related to data and empirical work.
Islamic finance literacy has become critical for the future growth of the Islamic financial secto... more Islamic finance literacy has become critical for the future growth of the Islamic financial sector in the twenty-first century. While a multi-pronged approach is called for, the focus in this paper is on the undergraduate programs in Islamic banking and finance. It analyses the state of teaching of Islamic banking and finance at the undergraduate level and proposes solutions for improving the undergraduate education of Islamic banking and finance
This paper summarizes salient features of the existing thinking on fiscal and monetary policies i... more This paper summarizes salient features of the existing thinking on fiscal and monetary policies in the Islamic economics literature. It outlines institutional framework for these policies from the Islamic economics perspective. The nature and role of government, in the light of the Shar ah principles, are revisited. The general goals for macroeconomic policies are discussed along with separate goals for each of the two policies. The argument is capped with a look at practical considerations in the actual working of both the policies. The following are the main points in the paper. (1) Roles of both the policies shall be complementary in the context of the overall objectives at the state level. (2) Thrust of both policies would be different from that presently recognized. These conclusions are drawn in the context of the government's role being limited to prudent governance and the society's economic and distributional concerns being addressed as much as possible without adopting the budgetary channel.
This paper summarizes salient features of the existing thinking on fiscal and monetary policies i... more This paper summarizes salient features of the existing thinking on fiscal and monetary policies in the Islamic economics literature. It outlines institutional framework for these policies from the Islamic economics perspective. The nature and role of government, in the light of the Shariʽah principles, are revisited. The general goals for macroeconomic policies are discussed along with separate goals for each of the two policies. The argument is capped with a look at practical considerations in the actual working of both the policies. The following are the main points in the paper. (1) Roles of both the policies shall be complementary in the context of the overall objectives at the state level. (2) Thrust of both policies would be different from that presently recognized. These conclusions are drawn in the context of the government’s role being limited to prudent governance and the society’s economic and distributional concerns being addressed as much as possible without adopting the budgetary channel.
This work seeks to present alternatives to the existing murabahah-, salam-, istisnā-, ijarah-, mu... more This work seeks to present alternatives to the existing murabahah-, salam-, istisnā-, ijarah-, musharakah- and diminishing musharakah-based financing instruments for financing by Islamic banks in the various sectors of the economy. The proposals made here have the distinguishing features that the financing structures are free from wad (promise), and involve less complicated contractual arrangements. The study also spells out a strategy for designing of Shari’ah-based financing instruments for retail banking with implications for building Shari’ah-based—not merely Shari’ah-compliant—financial structures. It also dwells upon institutional arrangements for getting the best out of the Shar’ah-based banking. Islamic Research and Training Institute P.O. Box 9201, Jeddah 21413, Kingdom of Saudi Arabia IRTI
This article is a chronological study of the Ayat on riba. It explains the legislative process on... more This article is a chronological study of the Ayat on riba. It explains the legislative process on riba in the light of the Ayat on riba that were revealed on five occasions: 5 years before the Hijrah (Surah ar-Room, 30: 39), shortly after the Hijrah (Surah an-Nisaa', 4: 160-162), Shawwal 3AH (Surah Aale 'Imran, 3: 130-136), late 3AH or early 4AH (Surah al-Baqarah 2: 275-277) and sometime in late 9AH or 10AH before Hajjat-ul-Wida'. Backgrounds of the said Revealations the linkages between them are also explained.
Journal of King Abdulaziz University-islamic Economics, 2017
This paper examines the nature, scope and methodology of Islamic economics, and draws attention t... more This paper examines the nature, scope and methodology of Islamic economics, and draws attention to some possibilities for theoretical and empirical research in this field. Islamic economics is defined as the systematic study of the problem of allocation of resources, production of goods and services and distribution of output, income and wealth in an economy in the light of the Qur'ān and the Sunnah. It has relevance for not only Muslims but also others interested in durable solutions to problems of financial crises, inflation, unemployment, poverty and economic inequalities. The discipline is concerned with the description (of ground realities) and prescription (of solutions for economic issues) in the light of the leads in the Qur'ān and the Sunnah. The Sharīʿah basis of Islamic economics, with a supportive role for fiqh, holds the key in building Islamic economics. The approach recommended for this purpose is reconstruction of Islamic economics rather than Islamization of economics. On the theoretical side, this paper lays emphasis on basic research for strengthening the theory of Islamic economics to fill the knowledge gap on, among other things, Islamic economic system, Islamic economy, the Sharīʿahbased transactions matrix, nature and role of government in modern times and review of economic policy agenda. On the empirical side, it highlights some matters related to data and empirical work.
This paper builds a simple macroeconomic model for a closed Islamic economy. The model focuses on... more This paper builds a simple macroeconomic model for a closed Islamic economy. The model focuses on not only determination of aggregate output and income (as in conventional macroeconomics) but also the determination of inequality in the determination of aggregate disposable income between the poor (the have-nots) and the rich (the haves). Policy multipliers are also calculated. On the economic policy side, the results establish that Islamization of an otherwise non-Islamic economy through the introduction of zakah, will lead to increase in aggregate output and income but the end result may be either way for the degree of income equality
Analysis of poverty and income inequality has a long tradition in Pakistan. This study breaks som... more Analysis of poverty and income inequality has a long tradition in Pakistan. This study breaks some fresh ground in a number of respects. Following the summary of the economic background in chapter I, a consistent series of poverty estimates from 1963/64 to 1993/94 (14 observations) is developed in order to
Political Economy - Development: Public Service Delivery eJournal, 2009
Islamic finance literacy has become critical for the future growth of the Islamic financial secto... more Islamic finance literacy has become critical for the future growth of the Islamic financial sector in the twenty-first century. While a multi-pronged approach is called for, the focus in this paper is on the undergraduate programs in Islamic banking and finance. It analyses the state of teaching of Islamic banking and finance at the undergraduate level and proposes solutions for improving the undergraduate education of Islamic banking and finance.
International Journal of Economics, Management and Accounting, 1989
Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islami... more Toward a Theory of Aggregate Output, Income, and Economic Inequalities Determination in an Islamic Economy
This paper summarizes salient features of the existing thinking on fiscal and monetary policies i... more This paper summarizes salient features of the existing thinking on fiscal and monetary policies in the Islamic economics literature. It outlines institutional framework for these policies from the Islamic economics perspective. The nature and role of government, in the light of the Shariʽah principles, are revisited. The general goals for macroeconomic policies are discussed along with separate goals for each of the two policies. The argument is capped with a look at practical considerations in the actual working of both the policies. The following are the main points in the paper. (1) Roles of both the policies shall be complementary in the context of the overall objectives at the state level. (2) Thrust of both policies would be different from that presently recognized. These conclusions are drawn in the context of the government’s role being limited to prudent governance and the society’s economic and distributional concerns being addressed as much as possible without adopting th...
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