TITLE:
The Effect of Excluding Interest, in an Islamic Economy, on the Rate of Growth of Output and Achieving a Fair Return for Monetary Capital
AUTHORS:
Nagah Abdul Alim Abdul Wahab Abul Fotouh
KEYWORDS:
The Islamic Economic System, Interest on Capital, Efficiency, the Growth Rate of Output, Distributional Justice
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.11 No.11,
November
22,
2023
ABSTRACT: The
Islamic economic system, like other economic systems, aims to achieve
efficiency in allocating resources. Questions arise about the ability of this
system to achieve this efficiency in the absence of interest on monetary
capital in this economy, as it is considered usury forbidden in this system. This research studies in a comparative framework with the
traditional economy, some aspects of efficiency, analyzing and proving the
ability of the Islamic economic system, which excludes interest on capital as
it is forbidden usury, to maximize the rate of growth of output and achieve a
fair return on monetary capital that financing economic activity.