The Design of Instruments for Government Finance in an Islamic Economy
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 19 |
Release | : 1998-04-01 |
ISBN-10 | : 9781451847482 |
ISBN-13 | : 1451847483 |
Rating | : 4/5 (82 Downloads) |
Download or read book The Design of Instruments for Government Finance in an Islamic Economy written by International Monetary Fund and published by International Monetary Fund. This book was released on 1998-04-01 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents perhaps the most viable approach for the design of an instrument of government finance (and monetary management) in an Islamic economy where conventional transactions based on an ex-ante promise of a risk-free rate of return are forbidden. Resources to finance government infrastructural and development projects can be mobilized by issuing a national participation paper and this instrument can also serve as an instrument of monetary management. The paper discusses various conceptional issues underpinning the introduction of such an instrument and methods of calculating a corresponding rate of return. In principle, this approach has been accepted by the Islamic Republic of Iran.