Introduction to Islamic Economics: Theory and Application -- Contents -- Acknowledgments -- About the Authors -- 1. Economic Systems -- What Is an Economic System? -- Traditional Economic Systems -- Pure Market (Capitalist) Economic System -- Mixed Market (Capitalist) Economic System -- Mixed Socialist Economic System -- Command (Planned) Economic System -- Current State of the Global Economic System -- Growing Income and Wealth Disparities -- Instability of Economic and Financial Systems -- Neglect of Human Welfare Dimension of Economic Development -- Irrational Assumption of Rational Self-Interest -- Negative Impact on Environment -- Islamic Economics Paradigm -- Short History of Economic Thought in Islam -- Summary -- Key Terms -- Questions -- 2. Foundation of the Islamic Economic Paradigm -- Meta-Framework and Archetype of Economic Rules -- Implications of the Agent-Trustee Relationship -- Significance of Rule Compliance -- Impact of Scarcity -- Rationality and Freedom of Choice -- Individual Obligations, Rights, and Self-Interest -- Central Notion of Justice -- Shariah: The Law -- Summary -- Key Terms -- Questions -- 3. Institutional Framework and Key Institutions -- Key Institutions -- Property -- Contracts and Contractual Obligations -- Trust -- Markets: The Code of Conduct -- Risk Sharing -- Wealth Accumulation and Utilization -- Wealth Distribution and Redistribution -- Work and Work Ethics -- Competition and Cooperation -- Summary -- Key Terms -- Questions -- 4. The Islamic Economic System -- Social and Economic Justice -- Equality of Opportunity -- Justice in Exchange (Economic Transactions) -- Distributive Justice -- Prohibition of Interest (Al-Riba) -- Risk-Sharing Economic System -- Role of the State -- Summary -- Key Terms -- Questions -- 5. Key Microeconomic Concepts -- Defining Microeconomics -- Issue of Needs versus Wants.

Consumer Behavior -- Theory of the Firm -- Production Cost -- Risk and Profit-Sharing Feature -- Dynamics of Demand and Supply -- Equilibrium -- Role of Markets -- Efficiency versus Equity -- Market Models -- Role of the State -- Summary -- Key Terms -- Questions -- 6. Key Macroeconomics Concepts -- Principal Economic Agents -- National Income -- Consumption, Savings, Investment, and National Income Determination -- National Income and Output Determination -- Inflation -- Unemployment -- Open Economy: Trade in Goods and Services with Other Countries -- Why International Trade Is So Central to Islam -- Classical Theories of International Trade -- Implications of Islamic Teachings for International Trade and Economic Integration -- Summary -- Key Terms -- Questions -- 7. Macroeconomic Equilibrium: Characteristics of an Islamic Economy -- Models of an Interest-Free Economy -- Closed Economy Model -- Open Economy Model -- Summary -- Key Terms -- Questions -- 8. The Financial System -- Notion of Risk Sharing -- Building Blocks of the Islamic Financial System -- Islamic Banking System -- Two-Tier Mudarabah -- Two-Windows Model -- Wikala Model -- Liabilities -- Assets -- Distinctive Features of the Islamic Mode of Intermediation and Banking -- Capital Markets -- Stock Markets -- Securitized-Asset-Linked Securities-Markets -- Derivative Markets -- Takaful (Islamic Insurance) -- Primary, Secondary, and Money Markets -- Summary -- Key Terms -- Questions -- 9. Role of the State and Public Policy -- Basic Roles of the State in All Economic Systems -- Role of the State in the Islamic Economic System -- Policy Instruments of the State in Islam -- Economic Justice and Public Policy -- Role of Public Policy -- Monetary and Fiscal Policy -- Public Policy and Societal Risk Management -- Summary -- Key Terms -- Questions -- 10. Fiscal Policy.

Role of Fiscal Policy -- Fiscal Policy in an Islamic Economy -- Taxation -- Flat Tax -- Wealth Tax -- Public Finance -- Case for National Participation Paper -- Summary -- Key Terms -- Questions -- 11. Monetary Policy -- Role of Monetary Policy -- Monetary Policy in an Islamic Economy -- Choice of Islamic Monetary Instrument -- Choice of Direct Instruments -- Choice of Indirect Instruments -- Government Securities and Open Market Operations -- Equity-Based Government Securities -- Open Market-Type Operations -- Open Market Operations -- Summary -- Key Terms -- Questions -- 12. Economic Development and Growth -- Evolution of Western Economic Thought: From Smith to North and Sen -- Foundation and Framework of Development and Growth in Islam -- Economic Growth in Islam -- Dimensions of Development in Islam -- Distribution Justice, the Market, and the State -- Islamic Perspective on Financial Inclusion -- Risk Sharing and Wealth Redistribution -- Summary -- Key Terms -- Questions -- 13. Economic and Social Welfare -- Social Safety Net Provisions -- Concept of Safety Net and Welfare -- Empirical Evidence on Social Welfare from Select Muslim Countries -- Healthcare -- Education -- Employment and Labor -- Subsidies -- Reforms -- Summary -- Key Terms -- Questions -- 14. Economic State of Affairs in OIC Countries -- Public Policy in the Islamic Economic System -- Dimensions of Economic and Social Achievements in Muslim Countries -- Summary -- Key Terms -- Questions -- Glossary of Arabic Terms -- Bibliography -- Index -- End User License Agreement.

Gain deeper insight into the principles and theory of Islamic economics Introduction to Islamic Economics: Theory and Application provides an overview of the organizing principles and fundamentals of an Islamic economy. With deep discussion of the characteristics, rationale, key institutions, objectives, and instruments at work, the book addresses the core economic principles underlying a system based on the foundational teachings of Islam, and examines the implications for economic policies. Social welfare, economic justice, market functionality, efficiency, and equity are explored from an Islamic perspective, and the role and instruments of fiscal and monetary policy in Islamic systems are used to illustrate contemporary applications. Universities around the globe are offering courses on Islamic economics and finance, but despite the industry's rapid growth, most research has been focused on the financial principles rather than underlying economic principles. The first book of its kind, Introduction to Islamic Economics brings all the key concepts together into one reference volume. By outlining the ways in which Islamic finance and Islamic economics interrelate, this book can help readers to: Develop an understanding of the Islamic economic system and its institutional scaffolding Differentiate between the major characteristics of the dominant conventional economy and one based on the fundamental sources of Islam Understand the conditions that must be met for a just, well-balanced, stable, and growing economy Clarify the role of State, public policy, and risk-sharing in the Islamic financial system The Islamic financial system is expanding quickly, and those looking to increase their relevance in a changing economic landscape must get up to speed. Introduction to Islamic Economics provides a comprehensive overview of underlying economic system

offering a deeper understanding of the feature of the system. This book is an excellent complement to Introduction to Islamic Finance, 2E by Iqbal and Mirakhor.

Description based on publisher supplied metadata and other sources.

Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.