The Philosophy of Islamic Political Economy: Theory and Practice

Abstract

The paper aims to identify the contemporary principles of an economy based on compound interest through conventional banking system. Logical arguments have been placed regarding interest free (Mudariba) and its benefits to the society. It has also been discussed to understand the reason of the prohibition of Riba or interest in Islam. Impartially, the author has tried to analyze the benefits of an interest-free society for the needy class.

Keywords: Islamic Economy, Muslim Political Economy, Islam and Economy System, Contemporary Economy System, Interest-Based Economy, and Conventional Banking System.