Preview

Price Control in an Islamic Economy

Good Essays
Open Document
Open Document
852 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Price Control in an Islamic Economy
JOURNAL REVIEW
Title:
Price Control in an Islamic Economy
Author:
Muhammad Lawal Ahmad Bashar
Publish:
1997
Introduction

This paper emphasizes the control of the Islamic economic price. Government intervention in price control has been discussed in Islamic economics in 1950. Islamic economic margins redefine government intervention to raise the question of why, when, where and how the intervention will be allowed. These efforts have led to a different conclusion because it has happened with earlier scholars between the eleventh and sixteenth centuries.

Moreover, the purpose of this study was to throw doubt on the Shari’ah position in the market price, reviewing cases of price controls in the conventional economy and introduce contemporary scholars of Islamic law to the particular decision in the economic literature, Islamic theory rebuild price control.

Review

There are two facts that are considered authorities in Islamic law, namely first, a hadith reported by Anas that “One person came to the Prophet and requested him to fix prices in the market but he refused. Another man came and made the same request; the Prophet said it is Allah who pushes prices up or down, I do not want to face Him with a burden of injustice”. Second, Imam Malik reports on Caliph Umar intervention in the market by pushing sellers to sell at lower prices. He recorded the incident in Muwatta reported by Yunus bin Saeed bin Saif and Musaiyib that: "Umar bin Khattab passed by Hatib bin Balta'ah that sells dried grapes in the market. Umar told whether to raise prices or leave the market".

The four major schools of fiqh, namely, Maliki, Hanafi, Shafi’i and Hanbali there is little difference of opinion on price control in Islamic economics. For Imam Shafi'i and Imam Ibn Hanbal view that social authority is not entitled to set prices for two reasons and lack of goods where the cheapness and if higher prices as a result of natural causes, so the pricing is not fair to the

You May Also Find These Documents Helpful

  • Good Essays

    Rational Choice Theory

    • 596 Words
    • 3 Pages

    When we make a decision we weigh up the costs and benefits and choosethe option which offers the most benefit. Secondly, there are 'markets thatwith varying degrees of efficiency allow the actions of different participantsto function together efficiently.' Thirdly, prices and other market functionscan affect demand and supply, controlling desires and affecting the actions ofconsumers. Becker explains that price is not described in money terms but as ashadow price. For example, muslims cannot drink alcohol. This approach involves four theorems. Firstly, a rise in price reducesthe quantity demanded…

    • 596 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Westerners who work in this region of the world or do business with an Islamic business person, need to understand the extent to which religion and Islamic law are intertwined at all levels of society, including commerce, to greater and lesser degrees depending on the country. “This law is seen as deriving from direct, divine command.” Said Vogel. “This is important to grasp.” (Lagace, 2002)…

    • 700 Words
    • 3 Pages
    Better Essays
  • Best Essays

    Price Control

    • 1921 Words
    • 8 Pages

    When a price control is forced by the government, it’s usually imposed to help or protect particular parts of the population which would be treated inequitably by the unfettered price system. But one must wonder which part of the population, the consumers or the producers? Is it not true that the consumers always feel…

    • 1921 Words
    • 8 Pages
    Best Essays
  • Good Essays

    Islamic Accounting hopes that Islamic organizations abide by the principles of the Shari’ah or Islamic Law in its business activities. There is a prohibition of interest-based income or expense in the business activities according to the Islamic accounting. In Islamic accounting, the profit determination is more important. In the reporting of financial statement according to Islamic accounting, the reporting must be holistic. Its mean that both financial and non-financial business activities must be measured and reported in the statement to avoid any ambiguity.…

    • 485 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The issue that will be discussed in this essay is the relationship between fiqh and economics. However, bear in mind, the type of economy that will be discussed in this issue is Islamic Economics. In order to understand the relationship between fiqh and economics, we must first define the two terms. Fiqh is technically defined as understanding of the practical rules of shariah which has been deducted from their detailed evidences (Quran and Sunnah). It explains the rules of shariah in facing any kind of human activities. Islamic economics on the other hand, has many various definition that varies between scholars. One of the accepted definition is Isllamic Economic is defined as "the study of human falah according to achieved by organizing the resources of earth on the basis of human participation and cooperation "…

    • 717 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Islamic Business Ethics

    • 1180 Words
    • 5 Pages

    Ethics has always been a part of business. The article of Islamic Business Ethics & Finance: An Exploratory Study of Islamic Banks in Malaysia written by Muhammad Adli Musa studied about how Islamic finance which claims to offer global financial stability and high ethical standards should reflect Islamic values in all facets of behaviour to bring about collective morality and spirituality, which when integrated with the production of goods and services advance the Islamic way of life. This paper also attempts to investigate the consistencies or, if any, inconsistencies and explore the relationship between the Islamic business ethical norms and the practices of Islamic banks in Malaysia. In doing so it tries to address the current imbalance of emphasis and the lack of a comprehensive discussion on business ethics from a wider cultural and religious perspective with reference to Islam, particularly focussing on selected Islamic banks in Malaysia. The main research question of this study is how do the current practices in Malaysian IFIs mirror the Islamic ethical norms in business? The findings in this paper would potentially assist in the improvement of practices among IFIs to conform to the ethical norms established by Islam, which are in fact the core of their existence.…

    • 1180 Words
    • 5 Pages
    Good Essays
  • Good Essays

    “The Economic Philosophy of National Development” is the title of what has been presented by Lt. Kol. Prof. Dr. Abdul Razak Chin. He had explained a lot of brilliant ideas on political, national development, mercantilism, Islamic thought and also Islamic political economic in order to develop the nation. First of all, what is economic philosophy that very important in order to achieving the national development? What is philosophy that he had explained in his talk and what kind of philosophy that had be the main key nowadays?…

    • 1072 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Price Controls

    • 553 Words
    • 3 Pages

    Despite the fact that all markets tend to move into equilibrium, there might be occasions when neither buyers, nor sellers are satisfied with that equilibrium. Even at an equilibrium point buyers will contest their cases that prices should be go down, and sellers contest their cases that prices should be raised. On other occasions there might be strong political demands whether to raise or lower prices, but regardless of the situations the government impose price controls to regulate. Price controls can take the form of either price ceiling, or price floors (Krugman & Wells, 2009).…

    • 553 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Islam is a complete religon, it tends to protect and guide us in various aspects of life. Whether we are talking about faith, life, property (wealth), intellect ...etc We always find regulation and rules that show us the right way that satisfies Allah (S.W.T) to achieve success (falah). Islam as religion has three main parts aqida, shari'ah and ethiqs. We are going to talk about a part that goes under shariah wich is wealth (al-mal). Many asks why people try to get money if our purpose in Islam is to worship Allah (S.W.T) to pass in the hereafter ? To answer this question we have to know what do we mean by wealth in the perspective of Islam. Islam has a great vision of wealth in the life of individuals and society. It sees it as an imprtant tool to achieve in our religious, current and hereafter life. Hence, with money by drinks and food and also we give charity (sadaqa). Money is the main component of the human life cycle that enabales us ruling this world as the vicegerents to achieve al falah. Actually in islam perspective the true owner of wealth is God و انفقوا مما جعلكم مستخلفين فيه So we are intrusted to use this money to build this world and evolve it, subsequently we can say that we are not supposed to waste it. Therefor, we have to finde ways to inlarge it by investing it in what islam has aproved. Investing in islam is bounded by limits as long as it does not cross any prohibited rules in shariah. The moost unique feature in islamic investment is shariah compliance. Based on the principles of shariah compliance, these investment differ from other traditional types of asset classes investment. Shariah explains in deatail the islamic concept of money and capital, the relationship between risk and profitand the social responsibilities of financial institutions and individuals, pertaining to islamic investment. Keeping in view the percpects of islamic shariah, the islamic investment funds include a variety of modes investment namely equity funds, ijarah…

    • 446 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Some scholars in Islamic economics argued that the concept of time value of money is a key to the door or riba which is prohibited in Islam. However, some scholars are of the opinion that time value of money is a concept valid in Islamic economics. What are your opinions on this issue?…

    • 963 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Saidina Khalid Bin Al-Walid . His real name is Khalid bin al-Walid banal-Mughirah . He also has known as Mighty warrior . His father name is -Walid bin al-Mughirah bin Abdullah bin Umar bin Makhzum and his mother name is Lababah binti al-Harith.Khālid ibn al-Walīd ibn al-Mughīrah al-Makhzūmī also known as Sayf Allāh al-Maslūl (Drawn Sword of God), was a companion of the Islamic prophet Muhammad. He is noted for his military tactics and prowess, commanding the forces of Medina under Muhammad and the forces of his immediate successors of the Rashidun Caliphate; Abu Bakr and Umar ibn Khattab.[1] It was under his military leadership that Arabia, for the first time in history, was united under a single political entity, the Caliphate. Commanding the forces of the nascent Islamic State, Khalid was victorious in over a hundred battles, against the forces of the Byzantine-Roman Empire, Sassanid-Persian Empire, and their allies, in addition to other Arab tribes. His strategic achievements include the conquest of Arabia, Persian Mesopotamia and Roman Syria within several years from 632 to 636. He is also remembered for his decisive victories at Yamamah, Ullais, and Firaz, and his tactical successes at Walaja and Yarmouk.[2]…

    • 1686 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Islamic Accounting

    • 302 Words
    • 3 Pages

    State four (4) objectives of financial accounting and six (6) objectives of financial reports developed and established by AAOIFI.…

    • 302 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    In condition of effective working market mechanism the price influences decision making of all economic subjects on the side of demand and supply. Market price is considered to be the best coordinator of economic processes. Price reflects the real existing relations of production, status of demand and supply, consumer preferences and also the rationality of action of all economic subjects on the market.…

    • 2283 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    ARA240 Final

    • 2218 Words
    • 8 Pages

    The Quran and Hadith influence all facets of Muslim life. It is the responsibility of the mankind to resolve every issue with the knowledge and understanding bestowed by Allah, in the light of the teachings of Quran and Hadith. Quran and Hadith, the traditional sources of Islam, not only guide the spiritual lives of Muslims but also regulate their worldly affairs such as day-to-day financial transactions. This research paper discusses the influence of Quran and Hadith on two distinct but equally significant aspects of life, which are Sufism and Economics.…

    • 2218 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Imam Mawardi was born in Basra in 972 A.D. He studied fiqh under Abu al-Wahid al-Simari in Baghdad and produced many of his workings which include Al-Ahkam al-Sultania w'al-Wilayat al-Diniyya, Kitab Nasihat al-Mulk, Kitab Aadab al-Dunya w'al-Din, Qanun al-Wazarah, Personas of the Prophethood and other of his works that are undiscovered yet. He was appointed to the post of Qazi in Baghdad, also he served as diplomat on part of Caliph al-Qaim on 4 instances and on behalf of Caliph al- Qadir on one instance. He is one of the most prominent Islamic philosophers whose works are mainly based on Islamic politico-religious theory…

    • 1236 Words
    • 5 Pages
    Better Essays

Related Topics