Adela, Hatem,(2018), The impact of Musharakah financing on the monetary policy in the Islamic economy. , Review of Economics and Political Science, UNSPECIFIED
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Abstract
Purpose – This paper aims to contribute to formulating the methodological framework for a paradigm of
Islamic economics, using the development of the conventional economics, theoretical and mathematical
methods.
Design/methodology/approach – The study based on the inductive and mathematical methods to
contribute to economic theory within the methodological framework for Islamic Economics, by using the
return rate of Musharakah rather than the interest rate in influence the economic activity and monetary
policy.
Findings – Via replacement, the concept of the interest rate by the return rates of Musharakah. It concludes
that the central bank can control the monetary policy, economic activity and the efficient allocation of
resources by using the return rates of Musharakah through the framework of Islamic economy.
Practical/implications – The study is a contribution to formulate the methodological framework for a
paradigm of Islamic economics, where it investigates the impact of return rates of Musharakah on the money
market and monetary policy, by the mathematical methods used in the conventional economy. Also, the study
illustrates the importance of further studies that examine the methodological framework for Islamic
Economics.
Originality/value – The study aims to contribute to formulating the Islamic economic theory, through the
return rate of Musharakah financing instead of the interest rate, and its effectiveness of the monetary policy.
As well as reformulating the concepts of the investment function, the present value and the marginal
efficiency rate of investment according to the Islamic economy approach.
Keywords : | Monetary policy, Inflation rate, Interest rate, Return rate of Musharakah, Present value, Marginal sufficiency rate of investment, UNSPECIFIED |
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Journal or Publication Title: | Review of Economics and Political Science |
Volume: | 3 |
Number: | 3/4 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Heru Prastyo |
Date Deposited: | 16 Dec 2019 07:46 |
Last Modified: | 16 Dec 2019 07:46 |
URI: | https://repofeb.undip.ac.id/id/eprint/240 |