Abasyn Journal of Social Sciences. Vol.7, No.1

Economics of Enough and Islamic Finance, in Course of Financial and Economic Stability

Khan Shoaib

PhD Scholar, Graduate School of Asia Pacific Studies. Ritsumeikan Asia Pacific University

This paper gives an overview of the two important studies made by Diane Coyle and Hoosein, Zamir, Noureddine, & Abbas (2010). It provides an important frame work for understanding the relation of stable financial system, in future’s stable economy, under historical perspective. Coyle’s work high lights various factors which are linked with the future of economic uncertainty. We tried to explore the solutions of the problems raised by Coyle; by reviewing the work of Hoosein et al. This study analyzed the role of financial instability in current and future economic  perspectives by comparing it with Islamic financial system. The conventional financial and economic system that claims to be powerful and efficient somehow failed to achieve stability, equality, and trust, which therefore, requires epistemic reforms. In different yet complementary ways, Hoosein et al. and Coyle conveyed the same message in their work. Coyle raised a variety of hard questions, and started a debate on global capitalism with respect to the sustainability and stability of the financial system, growing inequality, erosion of trust on social and natural capital in context of the future of our coming generations. Whereas, Hoosein, Zamir, Noureddine, & Abbas (2010) focused on the inherent stability of Islamic finance, and expressed its relation to the social equality, justice, and trust. This study suggests that Islamic financial system can lend a hand to solve the financial instability, and economic uncertainty of the conventional system.  However, we also think that Islamic economic system still needs thorough study and sound regulatory / institutional frame work to replace or merge the current system.
Keywords: Financial crisis, financial system, economy, Islamic finance




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