Islamic Economics and the Islamic Subeconomy

Although Islamic economics was developed to serve cultural and political ends, efforts have been made to put its ideals into practice. There now exist Islamic banks, which claim to offer an interest-free alternative to conventional banking, and government-run Islamic redistribution systems, which we...

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Bibliographic Details
Published in:The Journal of economic perspectives 1995-10, Vol.9 (4), p.155-173
Main Author: Kuran, Timur
Format: Article
Language:English
Subjects:
Bank assets
Bank earnings
Bank loans
Banking industry
Bankruptcy laws
Banks
Bans
Cost control
Earnings
Economic activity
Economic systems
Economic theory
Financial economics
Foreign subsidiaries
Islamic banking
Islamic financing
Koran
Muslims
Profits
Traditions
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Summary:Although Islamic economics was developed to serve cultural and political ends, efforts have been made to put its ideals into practice. There now exist Islamic banks, which claim to offer an interest-free alternative to conventional banking, and government-run Islamic redistribution systems, which were established to reduce inequalities. These institutions have not revolutionized the economic lives of Muslims. Yet, along with a wide variety of enterprises that have emerged outside the purview of Islamic economics, they have formed vibrant Islamic subeconomies in numerous metropolises. These subeconomies are expanding because they foster interpersonal trust and offer opportunities for guilt relief.
ISSN:0895-3309
1944-7965
DOI:10.1257/jep.9.4.155