Riba and Inflation by Qazi Irfan

Top 20 FREQUENT WORDS

inflation 42 riba 21 prices 10 borrower 8 increase 8 price 8 irfan 7 islamabad 7 pakistan 7 qazi 7 contract 6 demand 6 increased 6 nov 6 books 5 liability 5 phenomenon 5 accounting 4 banks 4 central 4 economy 4 increasing 4 indexes 4 lender 4 profit 4 upward 4

DOCUMENT KEY POINTS

• although the same sense has traveled to many of islamic minds as well except with a question mark it equates to similar asking that an extra equivalent to inflation if charged by the lender will be considered as riba or not here the problem is double there is a well known confusion on the subject of inflation in western economies and when coupled with the prevailing confusion on the subject of riba in islamic world a it becomes horrendous at least there is a common settled perception that inflation is some sort of phenomenon related to the upward trend in prices but there is no unanimous agreement on the definition or what causes inflation
• page of riba and inflation qazi irfan islamabad a pakistan author hazariba dot com november the argument of inflation is often advocated to compensate for the loss of value or the depreciation in money and therefore any consideration to offset this damage may well be justified

• in dynamic societies economies when some happening or any phenomenon is observed influencing the economy or society then to keep the system ongoing the management drive also institutes and enforces controlling mechanis miss since the exact and agreed upon cause s of inflation are not identified therefore the subject is also handled segment wise to a certain extent
• there are many drawbacks connected naturally to indicators thus established from these indexes mainly because of the reason that these indexes do not cover every aspect but a weighted average of select group and therefore can not be reputed as convincing as it demands to deal with the problem

• how calculated from cpi which is a what causes inflation may be blab bla bla figures work simple is that it works because mostly people are interested in figures so even if nobody knows what causes inflation it will not make a difference or just very little difference a at least the inflation figure is known isn t it interesting what causes inflation an adequate amount of literature on different explanations is there available on book shelves and internet inflation is explained as a result of excess money supply a result of paper money an outcome of increase in demand a burden derived from over expenditure of government in the form of taxes etc
• what is difficult to understand is the situation where say i am on my place for long my city is calm negligible change in habitants increase in demand if any is met with the increase in supply wages are not increased since last year lifestyle of the city people cannot change overnight

• how and why riba or interest as the cause of inflation in order to explain how riba or interest becomes the main cause of inflation it is mandatory to further elaborate my point of view about riba that revolves around the non existence of the extraliability created in a transaction
• but the monkey if you know the story was not succeeded in confusing the complainant by jumping from one tree to another exerting efforts in order to solve the problem of plaintiff

• the books of borrower will be adjusted for an increased liability the assets side will be re evaluated to balance or to gain profit profit is the motive every where means and rules are subjective a check on options available to the borrower to match the increased liability will sound only to adjust the saleable assets prices upward

• one should not be confused when some one quotes that look the price of computer has gone down considerably so what inflation or the affect of interest are you talking about how this industry is saved from this phenomenon no it is not like this the above asserted cause of inflation is equally influencing this industry as well but the reason for decrease in prices is the advancement in technology
• when central banks adopt the policy of increasing interest rates it gives an impression that by increasing interest rates the inflation is reduced or at least capped from further increase in it you heard this and kept in mind but you can t be convinced because there is no logic told

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DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\riba

KeyWords

islam financ bankand asset fund mfi inflated financi mfis profit contract invest risk return increase price credit usuria waqf costly

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DOCUMENT REFERENCES

Number of Pages

6

Published Date

2106-02-07 09:28:15

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