Islamic Macroeconomics: A Model for Efficient Government, Stability and Full Employment [Paperback]

Islamic Macroeconomics proposes an Islamic model that offers significant prospects for economic growth and durable macroeconomic stability, and which is immune to the defects of the economic models prevailing both in developed and developing countries. An Islamic model advocates a limited government confined to its natural duties of defence, justice, education, health, infrastructure, regulation, and welfare of the vulnerable population. It prohibits interest-based debt and money, and requires full liberalization of all markets including labor, financial, commodity, trade, and foreign exchange markets. The government should be Sharia-compliant in its taxation power and regulatory intervention; it ought to reduce unproductive spending in favor of productive spending.

This book is essential reading for students and academics of Islamic economics and finance, economists, practitioners, and researchers.

List of figures  List of tables  Preface  Acknowledgments  1. Nature and dangers of statism  2. The government from a Sharia perspective  3. Sharia free market model  4. Zakat: A mandatory redistributive principle of a Sharia model  5. Fiscal policy from a Sharia perspective  6. Nature of money in Sharia  7. On the nature of inflationary financing  8. On the nature of financial repression  9. Sharia banking and capital markets sector  10. A fully liberalized labor market  11. Sharia free trade and foreign exchange policy  12. Growth policy and private sector development Conclusions  Index