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

This book 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.

There is an increasing need for western politicians, financiers, bankers, and indeed the western business community in general to have access to high quality and authoritative texts on Islamic financial and business practices. Drawing on expertise from across the Islamic world, this new series will provide carefully chosen and focused monographs and collections, each authored/edited by an expert in their respective field all over the world.

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.

About the Authors

Dr. Raja M. Almarzoqi was Advisor at the International Monetary Fund, a faculty member at the Institute of Diplomatic Studies, an Adjunct Professor at Thunderbird Global Business School and King Saud University, Saudi Arabia, a consultant to a number of financial institutions and governments, and a board member of several funds. He has been a conference speaker and writer on a wide range of topics in economics, including Islamic economics.

Dr. Walid Mansour is an Advisor at the Saudi Arabian Monetary Authority. He was Associate Professor of Islamic finance at King Abdulaziz University, Saudi Arabia. He was a research and teaching affiliate at the College of Liberal Arts & Sciences (Kansas University), USA. He has published several articles in internationally refereed journals in various areas, including Islamic finance, corporate finance, and Islamic financial product development.

Dr. Noureddine Krichene was an Economist with the International Monetary Fund, Advisor at the Islamic Development Bank in Saudi Arabia, and Professor of Islamic Finance at INCEIF, Malaysia. He received his PhD in Economics from the University of California, Los Angeles, USA. He is the author of Islamic Capital Markets: Theory and Practice.

Table of Contents

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

Bibliographic Information

Title: Islamic Macroeconomics: A Model for Efficient Government, Stability and Full Employment

Authors: Raja M. Almarzoqi, Walid Mansour, Noureddine Krichene

Publisher: Routledge

Language: English

Length: 208 pages

ISBN: 9781138106482

Pub. Date: 2018-04-05