Islamic Economics Studies Bi-quarterly Journal

Prohibition of interest as the wisdom of the "SHAR'E" in order to prevent the interaction of the speculator and the bank in creating a periodic phenomenon of "dislocation of the measure of value"

Document Type : Research Paper

Authors

1 PhD graduate in Economics, University of Tehran and Director of the Department of International Economics, Research Center of the Islamic Consultative Assembly

2 Professor, Faculty of Economics, University of Tehran

10.30497/ies.2023.243408.2113

Abstract

Economic societies have always experienced and will continue to experience deepening inequalities in the wake of repeated financial and banking crises. The specific question of the present study is which factors cause the metric of value to be dislocated during crises, and then, in what process, the value metric is re-established in the economic environment. To answer the above question, the library and documentary method has been used and to explain the concept of value metric, Allamah Tabatabaee's views have been referred to. The result of the research is that the flexible creation of credit by the bank, on the one hand, and the self-referentiality of speculation, on the other hand, lead to the occasional occurrence of monetary crises. Following each monetary crisis, we can only say that the initial and common understanding of the actors of metric has disappeared and in fact, there has been a revolution in the actors' understanding of the metric, so that the possibility to show the overall change in the metric through a definite, detectable, and measurable quantity is essentially eliminated. Under these circumstances, the metric, which was previously an objective being, now becomes a subjective being. Following the dislocation of the metric and the disappearance of the common understanding of the actors, self-reinforcing mechanisms will immediately start working and the inevitable result of which are: 1. Intrinsic increase of inequalities 2. Increasing dominance of the financial sector over the real sector of the economy.

Keywords

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Islamic Economics Studies Bi-quarterly Journal
Volume 15, Issue 1 - Serial Number 29
September 2023
Pages 201-228