Islamic macroeconomics: a model for efficient government, stability and full employment

The economic model in many developed and developing countries is characterized by a 'big governement' whose intervention limits free competition in the capital, commodity, and labour markets.

Since 2009, to remedy mass-unemployment, many leading countries have been locked into an expansionary fiscal policy, repressive money policy, record public and private debts, explosive asset prices, unstable exchange rates, and heightened uncertainties.

Likewise, many developing countries have been unable to reach autonomous development despite their vast territories and natural resources, remaining dependent on foreign aid without which they will fall into economic disorder.

This work proposes an Islamic model that offers significant prospects for economic growth and durable macroeconomic stability, and which is immune to the defects of the economic models prevailing both in developed and developing countries.