Islamic Macroeconomics

This book proposes an Islamic model that offers significant prospects for economic growth and durable macroeconomic stability and, which is immune to the defects of the economic models prevailing both in industrial and developing countries. Such a model advocates a limited government confined to its natural duties of defense, justice, education, health, infrastructure, regulation, and welfare of the vulnerable population. It prohibits interest-based debt and money, and requires full liberalization of all markets; labor, capital, and trade and foreign exchange markets. The government has to be Sharia-compliant in its taxation power; to reduce unproductive spending.