An Analytical Study of Moderen Economic Theories and Rationales Behind Interest
Abstract
ر، ام آدpk.edu.iiu@abubakar.muhammad
Abstract
The Islamic economic system is purely based on such an ethical system in
which contracts and matters between individuals and groups have been defined
in a way that the rights, duties and obligations of every human beings are
protected. On the one hand, Islam has given orders related to sales,
transactions, and other contracts but on the other hand also prohibited those
elements which are desastrous for economic and business relations among
people. Interest (Riba) is an element that promotes hatred among people as
well as Nations. Islam has discouraged and prohibited the interest. On the
contrary, the economic theories on interest such as waiting theory, time
perference theory, theory of compensation, theory of exploitation, theory of
production and classical theory of interest have adocvcated the permissibility
of interest. All these theories provide economic rationales behind charging the
interest. In this article all above mentioned theories along with their economic
rationales are briefly analyzed and critically examined in the light of socioeconomic rationales. Furthermore, this article also explains the inherent
weaknesses and flaws of these theories and outlines various types of interest in
detail. It is concluded from this study that Islamic injunctions discourages the
economic exploitation of individuals, groups and organizations. Besides,
Islamic system highlights the harmful effects of interest on the life of
individuals and also highlight its harmful effe
Muhammad Abu Bakar Siddique, Muhammad Abu Bakar Siddique. (2018) سود کے جواز پر جدید معاشی نظریات اورعقلی توجیہات کا تجزیاتی مطالعہ, Hazara Islamicus, Volume 7, Issue 1.
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