Helping you make sense of the global economy with Islamic finance.

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Articles

Musings challenging our economic system

ISLAM | ECONOMICS | FINANCE | PHILOSOPHY
September 2, 2023

Explaining the root cause of inflation and how fiscal dominance will have long-term implications on future inflation.

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Fiscal dominance will cause higher inflation. The Fed's ability to fight inflation is compromised by the public deficit and public borrowing of the US government. Understanding the root cause of inflation to know how to position for future macroeconomic trends.
August 31, 2023

History of the IMF from Bretton Woods and the creation of an economic system reliant on the US dollar. I discuss the neocolonial nature of the IMF to entrap developing countries using debt. A glance at historical Islamic empires and public debt. Imagining an IMF under Islamic finance and Islamic banking.

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IMF and Neocolonialism. Foundation of the IMF happened at Bretton Woods and it created a global dependence on the US and the US dollar system. IMF debts are a way to entrap developing countries. We need a solution to a global international financial institution that is ethical using Islamic finance and Islamic banking.
August 31, 2023

I discuss how fiat money affects time preference. Unsound money pushes us to favour the present over the future which has negative long-term consequences.

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Fiat money, unsound money, pushes us to have a high time preference. Fiat money forces us to prefer the present to the future which affects our financial decisions. High time preference also prevents us from focusing on long-term goals and thinking about future generations. Fiat money makes us focus on GDP numbers and neglecting the importance of qualitative factors such as happiness, health, wellbeing and experiential value. This goes against Islamic finance, islamic economics and Islam where muslims are taught in the Qur'an to have a low time preference and to favour the future over the present.