Tag: ar riba

April 11, 2011 Off

Islamic vs Interest based Finance

By Admin

In this book rigorous mathematical techniques are used to compare the Islamic financial system based on variable return scheme (VRS) with the traditional one based on fixed return scheme (FRS). It is shown, under certain assumptions which include risk aversion on the part of investors, that the Pareto optimal contract is the VRS. Also VRS spreads risks more evenly than FRS allowing more risk taking in the economy. The domination of the real world by FRS, i.e. debts contracts, is shown to be caused mainly by informational asymmetry and higher monitoring Costs in case of VRS. But these costs are not prohibitive. The more effective the methods of monitoring and the higher the level of honesty on the part of economic agents, the more superior the Islamic financial system would prove to be in practice.

December 5, 2010 Off

Islamic Economics & Commerce

By Admin

Ever wondered why your money buys less day by day? Is someone stealing your money? Or is it you yourself who is losing it? Where is your hard earned money going?

Ever wondered why our inflation rate never goes below two digits? Why food prices go high day by day? Why the auto rickshaw and taxi fares never go down? And why Governments fail to keep promises regarding price levels?

Ever wondered why poor are getting poorer while the rich get richer? Why Garlic which was Rs 40/kg last year, now costs Rs 240/kg?

They have blamed it on all, from bad climate to bad government, from improper distribution system to improper markets; Yes, these are the problems. But are these the root problems or is there something more fishy going behind the scene?

This book goes into deep analysis of the widely accepted but “unquestioned” claims. It questions the very fundamentals taught by our economic institutions and shows how they lead to MONETARY INJUSTICE. And its all based on statistics, facts and evidences. Its a no-nonsense-book.

And the book doesn’t leave the mystery unsolved. It provides the solution under the title which I feel would invite most grudges against this book – “Islamics Economics And Commerce”.

I invite everyone to read the book with an open hart and an unprejudiced mind.

All intellectual discussions related to this book are most welcome at [email protected]

– Rahil Ahmed Khan, Author.