Short-run speculation in economic and financial markets; Juridical and economic analysis

Authors

1 associate professor at faculty of economics, University of Esfahan

2 Instructor in department of economics; Isfahan University

Abstract

Uncertainty about the legitimacy of speculative transaction in economic and financial markets has created widespread controversial discussions among Islamic scholars. To recognize the nature of short – run speculative financial transactions from an Islamic viewpoint, through this paper, first, the relationship of these discussions with Keynes in one hand and Gharar, Gambling and Wager in the other hand were examined. Then, this research studied the nature of Keynesianism. At last, it was tried to understand the nature of short-run speculative transactions from an Islamic point of view conceptually and analytically.
The results showed that all short-run financial transactions that strongly have the nature of zero or negative sum games are not illegal. These transactions have a betting nature via unusual normal risk. We have frequently experienced them in exchange markets. It also revealed that it is not obligatory for entering the betting activities based only on chance according to jurisprudential principles. Entering such activities with prediction and estimation does not make them eligible. It was finally concluded that disregarding the doubt about being Keynesian concerning the short-run speculative transactions, these transactions can be considered as the instances of Gharar and betting.

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