Abstract
The issue of the existence of a positive rate of interest in models of economic growth and resource allocation is highly debatable in the economic literature. In the capitalistic system interest is the result of the roundaboutness of the capitalistic mode of production. In order to examine the theoretical constructs of the determination of the rate of interest in such a system one can go to the works of Knight,1 Lange,2 Joan Robinson,3 Sraffa4 and Dorfman, Samuelson and Solow.5 In this chapter we shall first make a brief study of these and other modern ideas of interest and then place the pure Islamic theory of interest in sharp contrast to these.
Originally published under the title, ‘The Doctrine of Riba’, in Journal of Development Studies (Institute of Development Studies, NWFP Agricultural University, Peshawar, vol. ii (1979)).
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Notes and References
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© 1986 Masudul Alam Choudhury
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Choudhury, M.A. (1986). Investment Theory in an Islamic Perspective. In: Contributions to Islamic Economic Theory. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-07728-1_10
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DOI: https://doi.org/10.1007/978-1-349-07728-1_10
Publisher Name: Palgrave Macmillan, London
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