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The islamic panacea to global financial predicament:a new financial architecture

The roots of the 2008 global financial crisis that originated in the United States subprime mortgage market are firstly traced to the demand side of financing. Borrower preferences are explained to be based on excessiveness of ownership and spending. Such excessive consumer preferences are matched u...

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Main Author: Masudul Alam Choudry,
Format: Article
Language:English
Published: Institut Islam Hadhari Universiti Kebangsaan Malaysia 2010
Online Access:http://journalarticle.ukm.my/1428/1/1.pdf
http://journalarticle.ukm.my/1428/
http://www.ukm.my/jhadhari
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spelling my-ukm.journal.14282016-12-14T06:29:27Z http://journalarticle.ukm.my/1428/ The islamic panacea to global financial predicament:a new financial architecture Masudul Alam Choudry, The roots of the 2008 global financial crisis that originated in the United States subprime mortgage market are firstly traced to the demand side of financing. Borrower preferences are explained to be based on excessiveness of ownership and spending. Such excessive consumer preferences are matched up with the suppliers’ decision to allow easy lending and accumulation of multiple debt-ridden loans. The cost of such financial excessiveness is shown to be the rate of interest. The relevance of interest rate in efficient financing and economic resource mobilization is questioned here from the theoretical side. Its rejection and replacement by participatory financing instruments in the good things of life is formalized. A new financial architectural design is thus laid out in terms of the central issue of money, finance and real economy complementary relations. These relations can be simulated by circular causation equations. The foundational conceptual premise is governed by the episteme of unity of knowledge. Thus the Islamic worldview of unity of knowledge is invoked to address the theme of 100% Reserve Requirement Monetary System (100%RRMS). Its social and economic implications are formalized Institut Islam Hadhari Universiti Kebangsaan Malaysia 2010 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/1428/1/1.pdf Masudul Alam Choudry, (2010) The islamic panacea to global financial predicament:a new financial architecture. Jurnal Hadhari, 2 (2). pp. 41-72. ISSN 1985-6830 http://www.ukm.my/jhadhari
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The roots of the 2008 global financial crisis that originated in the United States subprime mortgage market are firstly traced to the demand side of financing. Borrower preferences are explained to be based on excessiveness of ownership and spending. Such excessive consumer preferences are matched up with the suppliers’ decision to allow easy lending and accumulation of multiple debt-ridden loans. The cost of such financial excessiveness is shown to be the rate of interest. The relevance of interest rate in efficient financing and economic resource mobilization is questioned here from the theoretical side. Its rejection and replacement by participatory financing instruments in the good things of life is formalized. A new financial architectural design is thus laid out in terms of the central issue of money, finance and real economy complementary relations. These relations can be simulated by circular causation equations. The foundational conceptual premise is governed by the episteme of unity of knowledge. Thus the Islamic worldview of unity of knowledge is invoked to address the theme of 100% Reserve Requirement Monetary System (100%RRMS). Its social and economic implications are formalized
format Article
author Masudul Alam Choudry,
spellingShingle Masudul Alam Choudry,
The islamic panacea to global financial predicament:a new financial architecture
author_facet Masudul Alam Choudry,
author_sort Masudul Alam Choudry,
title The islamic panacea to global financial predicament:a new financial architecture
title_short The islamic panacea to global financial predicament:a new financial architecture
title_full The islamic panacea to global financial predicament:a new financial architecture
title_fullStr The islamic panacea to global financial predicament:a new financial architecture
title_full_unstemmed The islamic panacea to global financial predicament:a new financial architecture
title_sort islamic panacea to global financial predicament:a new financial architecture
publisher Institut Islam Hadhari Universiti Kebangsaan Malaysia
publishDate 2010
url http://journalarticle.ukm.my/1428/1/1.pdf
http://journalarticle.ukm.my/1428/
http://www.ukm.my/jhadhari
_version_ 1643735022938619904
score 13.211869

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