About this product

Product Identifiers

PublisherWiley & Sons, Incorporated, John

ISBN-100470823194

ISBN-139780470823194

eBay Product ID (ePID)69572928

Product Key Features

Number of Pages350 Pages

LanguageEnglish

Publication NameIslamic Money and Banking : Integrating Money in Capital Theory

Publication Year2009

SubjectIslamic Banking & Finance, General

TypeTextbook

Subject AreaReligion, Business & Economics

AuthorM. Kabir Hassan, Iraj Toutounchian

SeriesWiley Finance Ser.

FormatHardcover

Dimensions

Item Height1.3 in

Item Weight31.3 Oz

Item Length9.3 in

Item Width6.3 in

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Intended AudienceScholarly & Professional

LCCN2010-285184

Dewey Edition22

Series Volume Number788

IllustratedYes

Dewey Decimal332.1091767

Table Of ContentChapter One - Background: View of the existing literature on Islamic money and banking.Chapter Two - The Evaluation of Money Reconsidered: The nature and the functions of money in an Islamic environment. On this score, our ideas seem to match those of Adam Smith who maintained that "money is not wealth".Chapter Three - Integrating Money in Capital Theory: Interest (rate) and Riba revisited and assessed. Demand for money is examined here and speculative demand for money is reassessed. What makes interest tick? Here, reviewing the literature on interest (Riba), we briefly examine Muslim and Western Economists' views and then will proceed by exposing the economic impact of the existence of interest on money market, money whirlpool, speculation, saving gap, and unemployment.Chapter Four - The Myths about Interest (Riba); Facts and Fictions: In this chapter, having proposed the elimination of interest, we try to integrate money in capital theory. In so doing, a high ground is reached in that the context has become ready to make money as an endogenous variable and Islamic banking an integral part of the economic system, not a parasite.Chapter Five: Contracts of usury-free economy: Having made the reader rather familiar, up to this stage, with Islamic (interest-free) banking, we proceed by introducing the mechanism through which interest-free banking operates. To make the operations clearer, here we discuss some of the contracts which could be used by Islamic banks in order to meet various needs of different nature. The most important of these contracts is participation contract, known as Profit and Loss Sharing (PLS) in which the debate on capital will find its proper position. The rest of contracts may be considered as auxiliary ones.Chapter Six: The investment role of Islamic banking: The significance of the issue discussed here is twofold. First, Islamic bank is introduced as an endogenous institution. Second, Islamic bank's role in risk conditions will be analyzed. This particular issue is often neglected, and acted passively upon, not only by conventional banks but also by many Muslim scholars. Here, two other issues are introduced. The first is the role played by assets owned by productive firms, and the second, is that an attempt will be made to provide a rather convincing answer to the two-hundred-year-old question: what is the meaning of capital?Chapter Seven: Comparing conventional and interest-free banking (an inevitable task): A simple hypothetical model will be used here, and within different time periods the performances of these two systems will be assessed as it regards inflation, unemployment, income distribution, sustained growth, and relative shares of labor and capital.Chapter eight: Conventional versus Islamic banking (different entities): Here, the qualitative distinction made between the two systems, and one system will be analyzed as a monetary institution and the other as a financial one. Financial policy tools will also be discussed.Chapter Nine: The Role of the Central Bank in Islamic banking: Here, it will be made clear that the Islamic central bank, through non-interference in the market mechanism, unlike the conventional banking, will achieve community's economic objectives.

SynopsisThis book examines how money, in the absence of interest (Riba) and money market can become an endogenous variable of an economic system. It further tries to integrate money in capital theory and to make monetary sector part of the real sector aiming at removing the problems that arise from separation of the two., "In Islamic Money and Banking , Dr. Iraj Toutounchian reevaluates the principles of liberal capitalism. He shows how the global crises which have emerged from fluctuations in the success of this economic system throughout time could have been avoided if the underlying values of a truly humane economy had been taken into consideration. Rebuilding the framework of Islamic banking as a system which potentially can generate profit and keep national economies running to the good of a global economy, whilst at the same time being based on virtue and benevolence, Toutounchian provides a compelling case for the fundamental need to reconsider the global economy, going back to the fundamentals outlined centuries ago by Francis Hutcheson, Adam Smith and other theorists of liberal capitalism. Joseph DiVanna , Author, Understanding Islamic Banking and The Future of Retail Banking " Islamic Money and Banking is the result of many years of serious thinking and continuous thorough research on why the prevailing capitalist economic woes have repeatedly been and will certainly continue to recur. Prof. Iraj Toutounchian has successfully dismantled the decades of confusion between interest for money and profit for capital not based on Islamic injunctions and verdicts but rather on the views expressed by Western economists such as Keynes, Ricardo and John Stuart Mill. He concludes that as long as money is used as a store of value, it will encourage speculative activities that will give birth to interest and its derivatives. The main purpose of this is to completely remove this cancer cell from the capitalist body. The absence of interest will transform banks from monetary institutions of the conventional type to financial institutions of the Islamic type. Money market which are the result of speculation with money will be eliminated and replaced by commodities markets." Prof. Datuk Dr. Syed Othman Alhabshi , Chief Academic Officer && Dean of Faculty, Head of Takaful and Wealth Planning Department, The International Centre for Education in Islamic Finance (INCEIF) "Capital theory is the least understood in economics. Treating monetary theory independently of the real sector leads to unpalatable conclusions in capitalism. Prof. Toutounchian has made a serious attempt to explain the role of money and capital in Islamic economics. Money has to undergo a legal process to become capital and earn profit. The legal process changes the nature of money (potential capital) by combining with labor into actual capital. The author uses the principles of institutional economics with positive transactions cost to advance the case of Islamic economics, which can be both internally consistent and welfareimproving. I thoroughly enjoyed reading the book and enriched my own understanding of capital theory from an Islamic perspective. I am confident that the readers will benefit from it as the author tried to provide a comprehensive capital theory from an Islamic perspective." Kabir Hassan , Professor, University of New Orleans

LC Classification NumberHG1318

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Wiley Finance Ser.: Islamic Money and Banking : Integrating Money in Capital Theory by M. Kabir Hassan and Iraj Toutounchian (2009, Hardcover)

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