Usury and Interest: A Comparative Economic Study (book): Difference between revisions
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===New insights into the interest rates in modern economy=== | ===New insights into the interest rates in modern economy=== | ||
Like Rafiq Yunus, Mohammad Abrash addresses modern perspectives on usury and interest, articulating and examining nine different theories: | Like Rafiq Yunus, Mohammad Abrash addresses modern perspectives on usury and interest, articulating and examining nine different theories: | ||
#The theory of time preference: The monetary value over time and the distinction between present and future costs (p. 64). | |||
#The theory of consumption deferral or sacrifice and waiting: addressing the depreciation of consumer goods (p. 162). | |||
#The capital productivity theory: profit as an inherent result of capital (p. 163). | |||
#The Marxist theory: a critique of the capitalist system and the inclusion of interest in cost calculations (p. 164). | |||
#The liquidity preference theory: the time value of Liquidity (p. 165). | |||
#The theory of available lending balances: considerations of existing loan availability against demand levels and interest rate determination (p. 166). | |||
#The theory of accumulated labor: wealth as accumulated work or indirect activity (p. 167). | |||
#Risk Theory: Coverage for the risk of defaulting on debt (p. 169). | |||
#Theory of Use or Leasing: using or leasing funds (p. 171). | |||
After introducing these innovative theories, the author of the article begins by discussing the various types of inflation and their relationship with interest. He then revisits the fundamental differences between Islamic and Western thought from a different perspective, thereby providing an additional rationale to the previously stated nine theories, which posit that interest, understood as profit, is crucial for the survival and economic framework of the present age. Abrash notes a distinct difference between the time of Islam's birth and the modern world, which is partly evident in the contrast between the primitive pastoral economy of that period and the liberal economy of today. Consequently, he argues that the solutions offered by that earlier economy do not address the problems of the modern era. The author asserts that profit is an unavoidable element within any economic system (pp. 175-180). | After introducing these innovative theories, the author of the article begins by discussing the various types of inflation and their relationship with interest. He then revisits the fundamental differences between Islamic and Western thought from a different perspective, thereby providing an additional rationale to the previously stated nine theories, which posit that interest, understood as profit, is crucial for the survival and economic framework of the present age. Abrash notes a distinct difference between the time of Islam's birth and the modern world, which is partly evident in the contrast between the primitive pastoral economy of that period and the liberal economy of today. Consequently, he argues that the solutions offered by that earlier economy do not address the problems of the modern era. The author asserts that profit is an unavoidable element within any economic system (pp. 175-180). | ||
===The critique of the perspective of Muhammad Riyaz Abrash by Rafiq Yunus Al-Masri=== | ===The critique of the perspective of Muhammad Riyaz Abrash by Rafiq Yunus Al-Masri=== | ||
The concluding section of the book features a brief critique by Rafiq Yunus (the author of the first article) regarding the perspective of Mohammad Abrash (the author of the second article). Rafiq Yunus challenges Abrash's perspective on the relationship between Western and Islamic thought, asserting that, contrary to Abrash's claims, these two schools of thought have interacted and that the West has benefited from Islamic intellectual traditions. Additionally, the analysis of Islamic and Western economies reveals several advantageous insights, including an understanding of how Western economic practices have been informed by Islamic teachings and scholars, an exploration of the differences and unique characteristics of the two economic philosophies, and a dedicated effort towards the establishment of an Islamic economic framework (pp. 186-187). | The concluding section of the book features a brief critique by Rafiq Yunus (the author of the first article) regarding the perspective of Mohammad Abrash (the author of the second article). Rafiq Yunus challenges Abrash's perspective on the relationship between Western and Islamic thought, asserting that, contrary to Abrash's claims, these two schools of thought have interacted and that the West has benefited from Islamic intellectual traditions. Additionally, the analysis of Islamic and Western economies reveals several advantageous insights, including an understanding of how Western economic practices have been informed by Islamic teachings and scholars, an exploration of the differences and unique characteristics of the two economic philosophies, and a dedicated effort towards the establishment of an Islamic economic framework (pp. 186-187). | ||