Macroeconomic Relations in the Islamic Economic Order

Abstract

Schumpeter tried to enunciate in his monumental work, that economic science, if it is to be a science, must be bereft of all shades of value judgements. He defined ‘scientific economics’ to mean, ‘the sum total of the historical, statistical and theoretical techniques, together with the results they produce’.¹ The impingement of all shades of value judgements was to be considered outside the pale of economic theory, because, as Schumpeter claimed, such judgements leave economic analysis unaffected. Notwithstanding this claim the enunciation could not be sustained in the body of Schumpeter’s work.

This chapter was presented as a paper by the author at the Third World Congress of Social Economics, California State University at Fresno, 16–19 August 1983. An abridged version of this chapter is to appear in the International Review of Economics and Ethics.