The Principles of Islamic Political Economy

A Methodological Enquiry

This book examines the methodological development of the principles of Islamic political economy in its theoretical and applied aspects. This is carried out in a general equilibrium framework using the theory of social choice. Thus a comparative study is also undertaken here in these areas while developing the theory of Islamic political economy. In these respects this book appears to be the first one of its kind.

For the Islamic monetary sector equilibrium we need, Ma = Ms (7.10) This means
that the supply of savings (=S+AER, AER denoting change in excess reserve, ER
) equals the demand for money capital for investment (I). Equation (7.10) yields ...