Analyzing the Impact of Credit Creation in Fractional Reserve Banking on Macroeconomic Variables in Iran
Hojjat
Izadkhasti
Assistant professor of Economics, Faculty of Economics and Political Sciences
author
text
article
2017
per
Optimal performance of any economic system depends on the existence of both efficient real and monetary sectors. Financial-monetary system in conventional economics leads to inflation, inefficiency, instability and economic crisis because it is based on credit creation and creating debt. Therefore, designing of ideal monetary system based on Islamic principles requires analysis of dominant monetary system in conventional economics, which allows the possibility of overcoming the monetary system based on foundations of capitalist principles, and its formation on the basis of Islamic principles. In conventional monetary system, banking based on the principle of fractional reserve according to the maturity differences between deposits and lending creates money from Ex-nihilo. In this study, based on Sidrauski's model (1967) the impact of credit creation in the fractional reserve system on macroeconomic variables compared with %100 reserve system. Then, by solving the model, the empirical analysis and calibration will be discussed in the steady state. Theoretical and experimental results indicate that fractional reserve banking by adjusted golden rule of capital accumulation, reduces the accumulation of capital per capita, per capita GDP, per capita consumption and per capita real money balances in the steady state.
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
9
34
https://iee.rihu.ac.ir/article_1336_1adde5a84750a8275b3a60c8cc85a6c0.pdf
dx.doi.org/10.30471/iee.2017.1336
Feasibility of Using Waqf Bonds in Financing Municipalities Projects and Examining its Welfare Effects in Comparison with Municipal Tax: A Case Study of Shiraz, Iran
Ruhollah
Shahnazi
assistant professor, University of Shiraz
author
Hussein
Marzban
associate professor, University of Shiraz
author
Ma'asomeh
Mirzakhani
M.A. student, University of Shiraz
author
text
article
2017
per
In Islamic economy and Islamic societies, Waqf has been used for private provision of public goods. Waqf, will help provide proper approaches to current issues in new economy, such as production of public goods, structural adjustment, reducing budget deficit, reducing effects of congestion disposal of public policies and equitable distribution of wealth and income presented. To do Waqf, besides motivation, faith and culture, it is important that the donor or waqif can afford it. Urban public services are one of the classical municipal duties. But on the one hand, the speed of urban development and on the other hand, weak financial structure and the lack of stable income, are the causes of the growing gap between financial ability of municipalities and urban development needs. Therefore, the municipalities and local governments throughout the world should try to reform the financial structure. Waqf is one of the private ways to finance the public goods in Islamic economic. To participate in the Waqf, not only the motivation and faith, but also the power of financing are important. Recently participatory Waqf methods have been designed in which individuals may enter to Waqf with any amount of funds. This method is known as Sukuk-based Waqf or Waqf bonds. The purpose of this paper is to investigate the feasibility of using Waqf bonds to finance urban public goods. In this paper, a solution was proposed to "utilize and issue Waqf bonds by municipalities" to finance urban projects, and then the willingness to pay by individuals for municipal bills was measured. The results show that various factors affect the decision of individuals to buy Waqf bonds to assist the municipality in providing public services, including their confidence in the municipality, the usefulness of implementing Waqf bonds on financing urban projects, the duty to know the payment of municipality tolls and theamount of paying these tolls.
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
35
62
https://iee.rihu.ac.ir/article_1337_9d85edb8f033b6eac0d7cebd65cef9e6.pdf
dx.doi.org/10.30471/iee.2017.1337
Individual and Public Good from the Perspective of Islam and Competing Schools
Ali Reza
Lashkari
Assistant Professor of the Department of Economics of the Research Institute of Hawzah and University
author
text
article
2017
per
Determining the position of government in economic systems is based on philosophical approaches to the best organization and arrangements of social and economic institutions. Accordingly, the type of relationship between the state and the private sector is one of the main concerns of economic systems based on the anthropological and anthropological foundations of these systems. Human ends and motives of life and economic activities are defined on the basis of these principles, and on the basis of which individual and social behaviors are explained and ultimately the field of activities of the individual and the government becomes known. In this regard, the type of attitude toward the individual, the interest of the individual and society is very influential on individual choices and the decision-making and policy of the state and its sphere of intervention. The category of individualism and collectivism has become a special feature of the new era of social life as a fundamental issue in social science. In response to this question that how the ends and motives mentioned in the Islamic system are explained, this paper, using the method of content analysis and deductive reasoning, while focusing on the philosophical foundations of the existing systems in comparison with the Islamic system, examines the basic issues such as the ends, goals and motives in these systems. Also, by studying the philosophical tendencies of Muslim scholars about individuals and societies, they have addressed the nature of good or individual and collective good. And it tries to identify the status of government in this field. In this regard, it is observed that thinkers who have accepted collective identity do not interpret collective good in individual good and rights, and prioritize collective good because they are more important than individual ones. While those who have not accepted collective identity have reduced collective good to individual rights and made it preferential in terms of giving priority to the collective rights in comparison with individual rights.
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
63
88
https://iee.rihu.ac.ir/article_1338_0eec9b0a4025dd972bba9d497455ea9a.pdf
dx.doi.org/10.30471/iee.2017.1338
Prioritizing Components of Resistance Economy Related to the Capital Market
Morteza
Soltani
assistant professor, University of Tehran
author
Mohammad Ibrahim
Raei EzAbadi
Phd student of University of Tehran
author
text
article
2017
per
In the past few years, with the intensification of Western sanctions against Iran, the theory of resistance economy has been raised by the Supreme Leader of the Islamic Revolution as a model of Islamic economics in accordance with the conditions of the country and the distinct missions of the Islamic Republic of Iran, and has been welcomed by scholars and scholars. One of the important pillars of the country's financial system, which plays a significant role in implementing macroeconomic policies, is the capital market. In this study, we intend to examine the role of capital markets in realization of resistance economy. For this purpose, based on literature review and interviews with experts, capital market-related economic component of resistance economy were identified. Then, using the Delphi technique 10 key components were determined. Then, using DEMATELTechnique the internal relationship between these components and the impact and influence on / from each other is determined. Finally, using the analytical network process (ANP), component of capital market-related resistance economy is prioritized. In the end, according to the components priorities, the necessary solutions to achieve the economic policy of resistance are presented. In the end, the components of the resistance economy associated with the capital market have been prioritized using the Analytical Network Process (ANP) method, and, given the priority of the components, the necessary strategies for realizing the resistance economy policies have been presented.
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
89
106
https://iee.rihu.ac.ir/article_1339_da01fe1c381f6f867fefdf3a7d700d03.pdf
dx.doi.org/10.30471/iee.2017.1339
A Framework for Designing the Waqf based Economics
Naser
Jahanian
Member of the Faculty of Economics Department of Research Institute for Islamic culture and Thought
author
text
article
2017
per
Despite the importance of the Waqf institution in Islamic economics and despite its brilliant record in ancient Islamic civilization, today it faces challenges in terms of efficiency, organization and schooling. For solving these challenges, the authorities of this institution follow "Waqf Comprehensive system of economic transformation plan", but the issue of "Waqf economy" and its components and dimensions are not available in scientific and academic form even to the officials of this institution to find problems with scientific methods and deals with to solve them. Therefore, the present article seeks to design a framework for the economy of Waqf. This paper is exploratory and its main question is: "What are the key elements of the economy of Waqf in three areas 1). Waqf demand; 2). Waqf offer; 3). the structure of relations between government and Waqf institution?" The answer to this basic question will be obtained through the "analytical-descriptive" method. Findings indicate that progress of "Waqf economics" depends on development of "third section economics". In brief, Waqf can solve institutional challenges in terms of efficiency, organizational, and ideological through development of "third section economics".
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
107
130
https://iee.rihu.ac.ir/article_1340_86e1e6e34d8ff79dccb3f9699038e161.pdf
dx.doi.org/10.30471/iee.2017.1340
Overcoming the Challenges of Management in the Waqf Joint Investment Fund from the Perspective of Corporate Governance
Mustafa
Kazeminajafabadi
Research Institute of Hawzah and University
author
text
article
2017
per
One of the most important developments in the third millennium in the business world should be to improve the position of the board of directors and to rethink their roles, responsibilities and duties today. Corporate governance includes criteria that can reduce the ability of managers to pursue their own interests by improving the concentration of corporate control, and improve corporate performance. Waqf Joint Investment Fund, like all other companies, suffer from various challenges, despite all the opportunities they have. One of these challenges is the ineffectiveness of management in the Waqf investment funds, which leads to bad behavior of managers. In this paper, the issue of corporate governance has been addressed to overcome this challenge. In terms of corporate governance, to improve the position of welfare funds, the performance of managers must be improved. To this end, you can use a policy package that includes transparency, monitoring, ethics and incentive management. Therefore, in addition to stimulating spiritual and charitable motives, it is possible to use optimal transparency and control, through incentive and punitive policies, to meet and alleviate the challenges of management. This paper has been developed with a library method and to strengthen the position of management in the Waqf funds for the institutionalization of the Waqf culture and the development of endowed (Waqfi) sources.
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
131
152
https://iee.rihu.ac.ir/article_1341_f25dabea8e2044fcfc77423b37c83215.pdf
dx.doi.org/10.30471/iee.2017.1341
Suggesting a Sukuk-based banking model within the law for usury (interest) free banking
Mojtaba
Yousefi Dindarloo
PhD student of economics, University of Shiraz, (corresponding author)
author
Mohammad Ali
Shahsavari
Master of Economics, Shahid Beheshti University
author
text
article
2017
per
In this paper, a Sukuk-based model for banking is proposed within the law for usury (interest) free banking. According to the proposed model, a typical Islamic bank should provide loans, especially the long term based on the Sukuk distribution instead of providing loans by following the Islamic contracts. The expected direct implications of the model can be mentioned as follows: reduction in the credit risk, enhancing the liquidation of bank assets (decreasing the liquidity risk), improving the ability of bank to change its asset combination (decreasing the market risk) stablishing new channels for provision of bank resources, and enhancing the volume of financing made through the bank. By comparing the properties of the proposed Sukuk-based model whit the current conventional Islamic banking via CAMELS approach, it is expected that the proposed model has better performance. Furthermore, at macro level, enhancing the performance of the money and capital markets and improvement the capability of monetary authority in policy making (for example, decrease in the money creation for a given loan payments, providing the opportunity for setting up interbank based on Sukuk,...) can be occurred. Subject to specific considerations, our investigation also confirms that proposed model offer better performance than a model introduced in prevised research based on securitization of bank asset.
Journal of Iran's Economic Essays (JIEE)
Research Institute of Hawzah and University; "Hawzah wa Dāneshgāh Research Institute"
1735-3300
14
v.
27
no.
2017
153
181
https://iee.rihu.ac.ir/article_1342_1beb6b39d00a4eab4434e7334c4dc65c.pdf
dx.doi.org/10.30471/iee.2017.1342