Click for new scientific resources and news about Corona[COVID-19]

Paper Information

Journal:   THE ECONOMIC RESEARCH   FALL 2006 , Volume 6 , Number 3; Page(s) 131 To 154.
 
Paper: 

ACHIEVING STEADY GROWTH BY ELIMINATING INTEREST RATE IN ISLAMIC MONETARY SYSTEM

 
 
Author(s):  POURFARAJ A.R.*
 
* MAZANDARAN UNIVERSITY
 
Abstract: 

Separating money market from capital market in capitalism, rate of interest variable is one of the most important factors in reaching equilibrium in these two markets. In this method, investors by accepting a known rate of interest with an unknown income expectation, try to make investment decisions. This system is associated with risk-taking and trade cycle. But lack of segregation between money and capital market in Islamic monetary system, and interest rate as a function of income and prospective profits, the system lacks risk and trade cycle.

This article theoretically attempts to show the efficiency of these two models for economic growth by introducing money demand model which is based on the lack of segregation between these two markets and Solo growth model. The result findings show that this model within a shorter time results in sustainable growth and the net effect of that on income increase and welfare is more than monetary system in capitalism.

 
Keyword(s): INTEREST RATE, USURY, SEGREGATION OF MONEY AND CAPITAL MARKET, STEADY ECONOMIC GROWTH
 
References: 
  • ندارد
 
  Persian Abstract Yearly Visit 77
 
Latest on Blog
Enter SID Blog