Publication details for Professor Muhammed-Shahid EbrahimEbrahim, Muhammed-Shahid (2008). Discussion Forum: The Financial Crisis: Comments from an Islamic Perspectives. IIUM Journal of Economics and Management 16(2): 111-138.
- Publication type: Journal Article
- ISSN/ISBN: 2462-1420
- Further publication details on publisher web site
Author(s) from Durham
I plan to summarize the discussion of my three eminent colleagues along the following framework (incorporating the Islamic perspective): (i) What is the root cause of the current subprime crisis? (ii) What is the impact of the crisis on the global economy? and (iii) What lessons do we derive from the ongoing crisis to restructure the Islamic financial architecture and to improve the economic status of the underprivileged? All three colleagues discuss issues (i) and (iii). Dr. Chapra is the only exception shedding some light on issue (ii). My perspective is slightly different from all three, as I have been trained as a theorist in financial economics especially focusing on the twin issues of asset pricing and financial contracting. I will therefore emphasize on the areas of my expertise and not comment on issues relating specifically to monetary economics, where I have no exposure. Likewise, I will not comment on the issue of bayc al-dayn (sale of debt), which is highly debatable and needs to be re-analyzed in the light of the Qur’OEn, Sunnah and modern financial economics.