I'm no economist but I've been thinking about the current crisis in the US credit markets along with the Wall Street bailout and have wondered how the situation could be viewed through an Islamic lens.
For example, many of the practices and approaches which are currently deemed responsible for the crisis (e.g. predatory lending) are clearly prohibited in Islam (see Islamic Perspective on Meltdown in American Markets by Liaquat Ali Khan).
This suggests that Shariah-compliant financial institutions could be insulated from some of the effects of the crisis and in fact, this seems to be supported empirically to some degree (see Asia's Islamic finance sector weathering storm well)
It will be interesting to see if after the dust settles, we will see more growth in the Shariah-compliant sector of the economy (e.g. Islamic bonds could give London leg up in growing sphere of Shariah finance)
I also wonder if some of the more radical voices (like members of the Murabitun who hold that U.S. paper currency is based on usury and advocate bringing back the Islamic dinar) will also gain support in the wake of the crisis.
For some articles on their views see:
Building Sound Economic Foundations (part 1)
The Role of the Market in any Future African Economy
Zakat-The Fallen Pillar
The Islamic Money System
Finally, for a previous post on Islamic finance see:
"if money is the root i want the whole damn tree"
For example, many of the practices and approaches which are currently deemed responsible for the crisis (e.g. predatory lending) are clearly prohibited in Islam (see Islamic Perspective on Meltdown in American Markets by Liaquat Ali Khan).
This suggests that Shariah-compliant financial institutions could be insulated from some of the effects of the crisis and in fact, this seems to be supported empirically to some degree (see Asia's Islamic finance sector weathering storm well)
It will be interesting to see if after the dust settles, we will see more growth in the Shariah-compliant sector of the economy (e.g. Islamic bonds could give London leg up in growing sphere of Shariah finance)
I also wonder if some of the more radical voices (like members of the Murabitun who hold that U.S. paper currency is based on usury and advocate bringing back the Islamic dinar) will also gain support in the wake of the crisis.
For some articles on their views see:
Building Sound Economic Foundations (part 1)
The Role of the Market in any Future African Economy
Zakat-The Fallen Pillar
The Islamic Money System
Finally, for a previous post on Islamic finance see:
"if money is the root i want the whole damn tree"
