Resolution of the Great Economic Problems in Contemporary Times in Islamic Economic Perspectives

Abstract

The principle of ethical endogeneity underlying humanistic institutional economics is central to the economic principles of Islam. Through this approach to major economic problems in contemporary times, Islamic economics presents an alternative that is institutional in nature and at the same time different from all received economic doctrines. Only under restrictive conditions of consumption, production and distribution can the results of resource allocation in Islamic economics be made to approximate to the other paradigms. Islamic economics can thus be considered a direct derivative of the general theory of humanistic institutional economics with assumptive extensions to other areas of economics with humanistic elements in them. Our focus in this chapter is on the Islamic economic resolution of the great economic problems of contemporary times in an integrated fashion and under the ethical endogeneity principle of humanistic institutional economics.