Seyed Abbas Mousavian: Difference between revisions
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# The economic foundations of financial instruments must be taken into account. These are not the principles and criteria Sharia has prescribed for transactions. For example, in addition to the religious conditions and rulings governing leases, lease securities must be complied with other criteria to be efficient financial instruments. These criteria may be of those are considered in microeconomics or of those considered in macroeconomics. In microeconomics, say, these are must be observed: 1. Liquidity: the capacity of financial instruments to be liquidated and rapidly converted into money. 2. Efficiency: the relative superiority of certain financial instruments over similar instruments in fulfilling customers’ objectives and motivations. In macroeconomics also criteria such as financial instrument’s alignment with economic growth and justice must be observed.<ref>Mousavian, Islamic Financial Instruments, pp. 253-267.</ref> | # The economic foundations of financial instruments must be taken into account. These are not the principles and criteria Sharia has prescribed for transactions. For example, in addition to the religious conditions and rulings governing leases, lease securities must be complied with other criteria to be efficient financial instruments. These criteria may be of those are considered in microeconomics or of those considered in macroeconomics. In microeconomics, say, these are must be observed: 1. Liquidity: the capacity of financial instruments to be liquidated and rapidly converted into money. 2. Efficiency: the relative superiority of certain financial instruments over similar instruments in fulfilling customers’ objectives and motivations. In macroeconomics also criteria such as financial instrument’s alignment with economic growth and justice must be observed.<ref>Mousavian, Islamic Financial Instruments, pp. 253-267.</ref> | ||
=== | === Using the Methods and Instruments of Conventional Economics in Islamic Economics === | ||
Mousavian maintains that methods and approaches developed within the conventional economic system are not incompatible with the Islamic economic system. According to him, these methods can be modified within the framework of the Islamic economic system and incorporated into the issues of Islamic economics.<ref>Mousavian, Islamic Banking, p. 29.</ref> | Mousavian maintains that methods and approaches developed within the conventional economic system are not incompatible with the Islamic economic system. According to him, these methods can be modified within the framework of the Islamic economic system and incorporated into the issues of Islamic economics.<ref>Mousavian, Islamic Banking, p. 29.</ref> | ||