An Advanced Exposition of Islamic Economics and Finance

Author: Choudhury, Masudul Alam and Mohammad Ziaul Hoque
Choudhury, Masudul Alam and Mohammad Ziaul Hoque
This book is a challenging inquiry using the foundational epistemology that establishes the Islamic worldview and its applications to all socio-scientific theory, issues and problems. This foundational premise of all socio-scientific inquiry is the epistemology of unity of knowledge in the Qur’an combined with the Guidance of the Prophet Muhammad (Sunnah) and extensive discourse in scientific reasoning. Such a foundational epistemology called Tawhid, the Oneness of Allah in the Qur’an, is challenging and quite a different worldview of socio-scientific inquiry than the existing thinking and practice that came to be known as ‘Islamic Economics and Finance’. The latter literature is embedded in mainstream economic theory and practice. It contributes to the understanding of the methodology emanating from the fundamental epistemology of Tawhid in socio-scientific reasoning. No particular demand is placed on such a development as an offshoot of mainstream economic, financial and more widely of socio-scientific thinking and practice. Thus, not only ‘Islamic Economics and Finance’ but also mainstream socio-scientific thinking await a new epistemology and worldview that can be quite distinct and more holistic for the benefit of mankind than the confined and narrow vision of both mainstream and ‘Islamic’ economics and finance in particular and socio-scientific thinking and practice in general. This book is a bold inquiry in the new and challenging direction of unity knowledge as the spring of new epistemological thinking and its application.


“this interesting collection of essays that throw new light on some the issues that those working in the field of Islamic economics have grappled with in the recent years … The approach is centered on the Islamic concept of Tawhid, the unity of divine knowledge and the oneness of Allah, and it is this that brings the diverse elements together and provides a common thread. In particular by applying the principles of Shura or consultation to intellectual debate, the authors developed an interactive, integrative and evolutionary process to tackle each of the issues addressed … the authors also support the concept of a 100 percent reserve requirement being imposed on commercial banks in the interests of financial stability, and discuss this in the context of the Islamic prohibition of Riba or interest. There is also an interesting technical treatment of Takaful, Islamic insurance.” – (from the Commendatory Preface) Professor Rodney Wilson, University of Durham

Table of Contents

Introduction: The Epistemological Reference
The Paradigm of Socio-Economic Development
Corporate Governance
The Question of Liquidity
Project Finance
A Paradigm for Islamic Banking
A Monetary System with 100 percent Reserve Requirement and the Gold Standard
Micro-Money and Real Economic Relationship in the 100 percent Reserve Requirement Monetary System
An Ethico-Economic General Equilibrium Study of Linkage Between Money, Finance and Real Economy Using Islamic Insurance
Concluding Directions: Monetary Integration by the Gold Standard
Questions in Islamic Economic and Financial Analysis
Subject Index