Economics and Business

Commodity Exchange and Stock Exchange in Islamic Economy

The main objective of this paper is to review contemporary practices in commodity, currency and corporate stock trading in the light of Islamic economic framework and to suggest bare outlines of the Islamic alternatives in these areas. Trade in commodities, currencies and stocks involve forward and futures contracts. Arbitrage, hedging and speculation are also essential elements of these markets. We shall try to examine these practices to determine their compatibility with the Islamic law. We shall also try to find out the exact point where they deviate from the Islamic framework and suggest some mechanism to perform the same economic function in the Islamic economy.

Methodology of Islamic Economics

The main objective of the present paper is to discuss in broad and general terms methodology of Islamic Economics and to show its major differences with the methodology of economics. It would also discuss some of the methodological issues relating to Islamic economics. This paper does not intend, however, to discuss or appraise methodology of economics. A vast literature exists on this subject  and its restatement at this place would not add much to the pool of knowledge. In this section we intend to take up two questions: first, why do we discuss methodology of a subject especially that of economics? Second, why do we need a methodology for Islamic economics?

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