Zaman, Arshad and Zaman, Asad (2000): Interest and the Modern Economy. Published in: Lahore Journal of Economics , Vol. 1, No. 6 (2001): pp. 113-127.
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The argument that modern economies cannot function without interest is examined in detail. We show that Islamic alternatives to interest, which vary with the context and the type of loan, provide adequate substitutes. Interest based institutions lead to many types of difficulties both practical and theoretical. Islamic alternatives provide solutions to these difficulties.
|Item Type:||MPRA Paper|
|Original Title:||Interest and the Modern Economy|
|Keywords:||interest; riba; Islamic economics; prohibition of interest; profit sharing; Ricardian equivalence; Modigliani Miller Theorem|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other|
|Depositing User:||Asad Zaman|
|Date Deposited:||11. Aug 2008 00:04|
|Last Modified:||12. Feb 2013 04:46|
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