A Modern Perspective of Islamic Economics and Finance

Description

Traditionally, academic reflections on Islamic economics and finance have relied on a misleading understanding of Maqasid Al-Shari'ah. Much of the current research on the subject dogmatically adheres to the teachings of classical Islamic philosophers and does not appeal to practitioners of economics and finance who are looking for guidance on practical application rather than academic verbosity. This book aims to develop a blueprint for Islamic economics and finance by starting at the grass roots of trade and commerce. The majority of the world population, both in developed countries and emerging markets, have serious concerns over financial sustainability for themselves or their children. Islamic finance is meant to support an economy through genuine transactions and fulfil a duty to achieve a fair and prosperous society. Unfortunately, the industry has failed to fulfil this proposition and converged to conventional systems that do not link to the wider economic priorities of Islam. This book positions Islamic finance within the economic priorities of Islam while providing a cohesive understanding of Islamic economics and finance in a clear and practical manner. In doing so, the book provides the to-dos and not-to-dos of Islamic economics and finance, and instigates an Islamic monetary system in which people, not central banks, create money as long as they produce things demanded by other people. Contents List of Figures AND TABLES Figures Table PREFACE LIZARD HOLE Part I: The Ship of Fools MAQASID AL-SHARI’AH 1.1. Maqasid Al-Shar’iah: The Purpose of Divine Rules 1.2. The Role of Islamic Finance in Maqasid 1.3 Moral Hazard Part II: The Milkmaid and Her Pail ISLAMIC MONEY 2.1. The More Probable Origin of the Monetary System 2.2. Inflicting Pain on Youth 2.3. The Scruples of Islamic Money Creation45 Part III: Caravan IMPORTANCE OF TRADEIN ISLAM 3.1. Infant Industry 3.2. A Tale of Two Cities: Singapore and Hong Kong 3.3. Random Walk Versus Islamic Reasoning Part IV: Eleven Rounds FINANCING IN ISLAM 4.1. Financing Working Capital 4.2. Regulation and Supervision 4.3. Liquidity Management Part V: Conquistador A Parade from Greenfield to Capital Markets 5.1. Introduction to the Untold Story of Sukuk 5.2. How Expandable is Sukuk for Liquidity Management? 5.3. Resolution of Dissolution for Islamic Capital Markets Part VI: The Miser Wealth Distribution through Zakat and Poverty Alleviation 6.1. Poverty Alleviation 6.2. Complementary Currency as an Anti-Venom 6.3. An Islamic Monetary System Based on Fair Trade Part VII: Except by Taqwa “Conclusion” Bibliography Appendix: To-Do List and Not-to-Do List Index