Macroeconomics: an Islamic Perspective

Al-Jarhi, Mabid (2002): Macroeconomics: an Islamic Perspective. Published in: Proceeding book of International Seminar on Macroeconomics from Islamic Perspective: Theory and Contemporary Issues, September 22-24th, (22 September 2004)

Abstract

Islamic economics as a distinct school of thought within economics, studies the rationale and consequences of the resulting decisions. Naturally, Islamic economics does not have to be distinct in every aspect from its mother discipline. Islamic and conventional economics share several areas of behavioral analysis. However, the area of macroeconomics appears to be a good ground to develop distinct foundations. This is another step towards offering more general, yet less cryptic description of the major behavioral functions, especially those of saving, investment, money supply, and demand. At this stage, the target is to scrutinize the characteristics of macroeconomic equilibrium in an Islamic framework and ascertain its policy implications. The ultimate objective of laying the foundations of Islamic macroeconomics still requires further work. The specification of explicit introduction of consumers’ behavior is one area. The mathematical derivation of equilibrium and its stability conditions is another. All what can be said at this s age is that few more steps have been taken and there is more to come.

• Item Type: MPRA Paper
• English Title: Towards the Foundation of Islamic Macroeconomics.
• Language: English
• Keywords: macroeconomics, money, finance, saving, investment, money demand, money supply, money creation, equilibrium, public finance, Zakah, Awqaf, financial markets, stability.
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit

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