 Fiscal and Monetary Policy in IslamHossein Askari (), Zamir Iqbal and Abbas Mirakhor Chapter Chapter 7 in Challenges in Economic and Financial Policy Formulation, 2014, pp 109-134 from Palgrave Macmillan Abstract: Abstract The role of the state in an Islamic economy is to ensure that everyone has equal access to resources and means of livelihood, that there are rewarding employment opportunities for all those who can work, that market rules, regulations, and supervision minimize business uncertainties so that justice is attained and transfers takes place from the more able to the less able, and that distributive justice is ensured for the next generation. As Islam is a rulebased system, the state regulates, supervises, and provides an incentive structure for rule compliance, all within the framework of the rules prescribed by the Qur’an and Sunnah. The role of the government is broadly divided into two functions: first, a policy function that ensures that private interest does not diverge too far from public interest; and second, to design and implement an incentive structure to encourage rule-compliance, coordination, and cooperation. Keywords: Interest Rate; Stock Market; Monetary Policy; Central Bank; Fiscal Policy (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:psibcp:978-1-137-38199-6_7 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Studies in Islamic Banking, Finance and Economics from Palgrave Macmillan |
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