nep-isf New Economics Papers
on Islamic Finance
Issue of 2018‒08‒27
two papers chosen by
Halimatun Aris

  2. The Extensive Margin of Trade and Monetary Policy By Yuko Imura; Malik Shukayev

  1. By: Albadri, Abdul Aziz Munawar
    Abstract: The Qur'an is the main basis of Shari'ah. It states the principles while the sunnah of the Prophet provides the details of their application. For example, the Qur'an says: establish salah, observe sawm, pay zakah, take decisions by consultation, do not earn or spend in wrong ways but it does not describe how to do these things. It is the sunnah of the Prophet which gives us the details. The Qur'an is the main book of guidance and the Prophet taught how to follow it. The Prophet not only told us how to follow the guidance, he also practiced it himself. The Qur’an has rules for every aspect of life. It is complete and perfect, and guarantees us success, welfare and peace in this life on earth and in the life after death. For example, arbitrate and et all.
    Keywords: Arbitration, peace, conflict (conflict), judiciary
    JEL: K0 K00 K29
    Date: 2017–12–19
  2. By: Yuko Imura; Malik Shukayev
    Abstract: Many central banks are contemplating whether to issue a central bank digital currency (CDBC). CDBC has certain potential benefits, including the possibility that it can bear interest. However, using CBDC is costly for agents, perhaps because they lose their anonymity when using CBDC instead of cash. I study optimal monetary policy when only cash, only CBDC, or both cash and CBDC are available to agents. If the cost of using CBDC is not too high, more efficient allocations can be implemented by using CBDC than with cash, and the first best can be achieved. Having both cash and CBDC available may result in lower welfare than in cases where only cash or only CBDC is available. The welfare gains of introducing CBDC are estimated as up to 0.64% for Canada.
    Keywords: Business fluctuations and cycles, Economic models, Firm dynamics, International topics, Monetary policy
    JEL: F44 E52 F12
    Date: 2018

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