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Articles

Musings challenging our economic system

ISLAM | ECONOMICS | FINANCE | PHILOSOPHY

August 31, 2023

Interest Rates (Riba) and Incentives (Part 2): An Islamic Perspective

Discussing how interest rates lead to incentives that work against society and misallocates capital.

$An image of a money printer to visualise the fractional reserve banking system. The image shows how money is created by banks in the form of credit given the incentive of interest rates to lend newly issued money. Interest create the incentives to ruin money which Islamic finance is against. Under real islamic finance and islamic economic system there would be no new money created by the banks and the islamic banking system would use deposits to invest rather then lending newly issued money.$

August 31, 2023

Interest Rates (Riba) and Incentives (Part 1): An Islamic Perspective

Analysing the logic of interest rates and riba from an Islamic perspective and a brief history of money.

The hand is reaching out for money to show the power of incentives. This image represents how incentives lead us to certain outcomes. This is tied with the fact that interest rates and riba create incentives that lead to economic inequality and inefficient allocation of resources. Islamic finance tackles the problem by focusing on the root cause which is the incentive to determine an equitable outcome that is a fair and just economic system. Islamic economics and islamic finance.

August 31, 2023

Earning with Ethics: Starting My Journey from Conventional to Islamic Finance

My personal journey towards rediscovering Islam and creating a path from conventional to Islamic finance.