Date of Award
Spring 8-1-1990
Document Type
Thesis
Degree Name
Master of Arts (MA)
Department
Department Not Listed
Abstract
The Islamic economy is the subject of this thesis, which reviews the basic foundations of this system. The main idea under discussion is the implication of monetary and fiscal policy in an Islamic economy framework. This analysis shows how the positively sloped IS and LM curves can be achieved. These two curves are used to determine the value of national income and expected profit rate. The stability of the system is ensured and the policy effectiveness is studied. This study shows the following results: (1) IS-LM framework can be used to analyze the macroeconomic aspect of Islamic economy. (2) The monetary policy has uncertain results as long as national income concerned. (3) The monetary policy leads to a decline in expected profit rate. (4) Fiscal policy will lead to expansion in the natio.nal income. (5) Fiscal policy will increase expected profit rate. (6) In the long run, fiscal policy might be monetized; then the results will be as in (2) and {3).
Recommended Citation
Hassan, Khidir Mohamed Ali, "Macroeconomic Aspect of Islamic Banking and Finance" (1990). All-Inclusive List of Electronic Theses and Dissertations. 3400.
https://scholars.indianastate.edu/etds/3400
Included in
Banking and Finance Law Commons, Business Administration, Management, and Operations Commons, Finance Commons, Islamic Studies Commons, Political Economy Commons