The islamic panacea to global financial predicament:a new financial architecture
The roots of the 2008 global financial crisis that originated in the United States subprime mortgage market are firstly traced to the demand side of financing. Borrower preferences are explained to be based on excessiveness of ownership and spending. Such excessive consumer preferences are matched u...
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Institut Islam Hadhari Universiti Kebangsaan Malaysia
2010
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| Online Access: | http://journalarticle.ukm.my/1428/ http://journalarticle.ukm.my/1428/ http://journalarticle.ukm.my/1428/1/1.pdf |
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ukm-1428 |
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ukm-14282016-12-14T06:29:27Z http://journalarticle.ukm.my/1428/ The islamic panacea to global financial predicament:a new financial architecture Masudul Alam Choudry, The roots of the 2008 global financial crisis that originated in the United States subprime mortgage market are firstly traced to the demand side of financing. Borrower preferences are explained to be based on excessiveness of ownership and spending. Such excessive consumer preferences are matched up with the suppliers’ decision to allow easy lending and accumulation of multiple debt-ridden loans. The cost of such financial excessiveness is shown to be the rate of interest. The relevance of interest rate in efficient financing and economic resource mobilization is questioned here from the theoretical side. Its rejection and replacement by participatory financing instruments in the good things of life is formalized. A new financial architectural design is thus laid out in terms of the central issue of money, finance and real economy complementary relations. These relations can be simulated by circular causation equations. The foundational conceptual premise is governed by the episteme of unity of knowledge. Thus the Islamic worldview of unity of knowledge is invoked to address the theme of 100% Reserve Requirement Monetary System (100%RRMS). Its social and economic implications are formalized Institut Islam Hadhari Universiti Kebangsaan Malaysia 2010 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/1428/1/1.pdf Masudul Alam Choudry, (2010) The islamic panacea to global financial predicament:a new financial architecture. Jurnal Hadhari, 2 (2). pp. 41-72. ISSN 1985-6830 http://www.ukm.my/jhadhari |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
Universiti Kebangasaan Malaysia |
| building |
UKM Institutional Repository |
| collection |
Online Access |
| language |
English |
| description |
The roots of the 2008 global financial crisis that originated in the United States subprime mortgage market are firstly traced to the demand side of financing. Borrower preferences are explained to be based on excessiveness of ownership and spending. Such excessive consumer preferences are matched up with the suppliers’ decision to allow easy lending and accumulation of multiple debt-ridden loans. The cost of such financial excessiveness is shown to be the rate of interest. The relevance of interest rate in efficient financing and economic resource mobilization is questioned here from the theoretical side. Its rejection and replacement by participatory financing instruments in the good things of life is formalized. A new financial architectural design is thus laid out in terms of the central issue of money, finance and real economy complementary relations. These relations can be simulated by circular causation equations. The foundational conceptual premise is governed by the episteme of unity of knowledge. Thus the Islamic worldview of unity of knowledge is invoked to address the theme of 100% Reserve Requirement Monetary System (100%RRMS). Its social and economic implications are
formalized |
| format |
Article |
| author |
Masudul Alam Choudry, |
| spellingShingle |
Masudul Alam Choudry, The islamic panacea to global financial predicament:a new financial architecture |
| author_facet |
Masudul Alam Choudry, |
| author_sort |
Masudul Alam Choudry, |
| title |
The islamic panacea to global financial predicament:a new financial architecture |
| title_short |
The islamic panacea to global financial predicament:a new financial architecture |
| title_full |
The islamic panacea to global financial predicament:a new financial architecture |
| title_fullStr |
The islamic panacea to global financial predicament:a new financial architecture |
| title_full_unstemmed |
The islamic panacea to global financial predicament:a new financial architecture |
| title_sort |
islamic panacea to global financial predicament:a new financial architecture |
| publisher |
Institut Islam Hadhari Universiti Kebangsaan Malaysia |
| publishDate |
2010 |
| url |
http://journalarticle.ukm.my/1428/ http://journalarticle.ukm.my/1428/ http://journalarticle.ukm.my/1428/1/1.pdf |
| first_indexed |
2023-09-18T19:33:19Z |
| last_indexed |
2023-09-18T19:33:19Z |
| _version_ |
1777405106159878144 |