Challenges in Economic and Financial Policy Formulation: An Islamic Perspective (Palgrave Studies in Islamic Banking, Finance, and Economics)

an ideal society would flourish in every dimension, and with minimal but necessary government intervention. Unfortunately, in 2014, while Muslim countries have these divine rules to follow, they do not, and the dismal state of most Muslim countries says nothing about the Divine rules but speaks volumes about the rule compliance of individual Muslims, Muslim communities, and the policies and practices of their rulers. The Islamic financial industry is growing rapidly. There are a number of foundational elements that are still developing, with macroeconomic policy goals and instruments, and policy formulation in the public sector at the forefront. Challenges in Economic and Financial Policy Formulation provides an introductory, yet comprehensive, treatment of macroeconomic policies and their implementation in an Islamic-designed economic system. The authors discuss the characteristics, logic, objectives, organizing principles, policies and policy instruments in an economic system structured on the foundational teachings of Islam. This exciting new volume addresses the design and implementation of policies in Muslim countries and outlines the all-important question of policy objectives designed and implemented to convert the conventional system into Islamic economic and financial systems as envisaged in the Quran "Cover"--"Title" -- "Copyright" -- "Contents" -- "Figures and Tables" -- "Preface" -- "Acknowledgments" -- "CHAPTER 1 Significance of Public Policy" -- "CHAPTER 2 Institutional Perspective of Islamic Economics" -- "CHAPTER 3 Economic and Social Justice: The Policy Objective in Islam" -- "CHAPTER 4 Risk-Sharing Finance and the Role of Public Policy" -- "CHAPTER 5 Lessons from Financial Crisis: A Policy Failure?" -- "CHAPTER 6 Financial and Capital Market Policies*" -- "CHAPTER 7 Fiscal and Monetary Policy in Islam" -- "CHAPTER 8 Developing Social Capital*" -- "CHAPTER 9 Financial Inclusion: Implications for Public Policy" -- "CHAPTER 10 Environmental and Natural Resource Policies" -- "CHAPTER 11 Benchmarking Islamic Financeâ#x80;#x93;Enabling Policies" -- "CHAPTER 12 Policy Challenges: Building Institutions" -- "Notes" -- "Bibliography." Front Matter....Pages i-xiii Significance of Public Policy....Pages 1-10 Institutional Perspective of Islamic Economics....Pages 11-30 Economic and Social Justice: The Policy Objective in Islam....Pages 31-46 Risk-Sharing Finance and the Role of Public Policy....Pages 47-62 Lessons from Financial Crisis: A Policy Failure?....Pages 63-84 Financial and Capital Market Policies....Pages 85-107 Fiscal and Monetary Policy in Islam....Pages 109-134 Developing Social Capital....Pages 135-156 Financial Inclusion: Implications for Public Policy....Pages 157-177 Environmental and Natural Resource Policies....Pages 179-198 Benchmarking Islamic Finance-Enabling Policies....Pages 199-231 Policy Challenges: Building Institutions....Pages 233-248 Back Matter....Pages 249-303