Comparative Financial Systems in Judaism, Christianity and Islam: The Case of Interest
In today’s discussions the prohibition of interest, based in Shari’a law, is seen as solely an Islamic finance phenomenon and often advocated as a new way of providing financial services. It is important to recognise that the principles underpinning Shari’a are largely similar to those preached and practised by Judaism and Christianity as well as other religions. Both Judaism and Christianity have, for example, banned the receipt and payment of interest for a significant period of time, albeit that each had a slightly different interpretation on the permissibility of lending at interest. Although there is evidence about the existence of prohibitions on interest in other religions such as, for example, Buddhism, the focus of this paper is on the prohibition of interest in the three religions that are generally referred to as the Abrahamic or monotheistic faiths; Judaism, Christianity and Islam, the way in which the prohibitions entered into law and the impact on the availability of financial transactions that were executed despite the restrictions. The paper provides an insight into the way in which opinions regarding the permissibility of interest has changed over time.
Capitalism in Medieval Islam
He who looks for the term “capitalism” in the Islamic sources of the Middle Ages will look in vain. On the other hand, the term “capital” has been known since the beginning of Islamic culture. Even in the Holy Book of Islam, in the Sūrat al-Baḳara, the idea of capital appears in connection with trade, business, and the illicit practice of loaning for profit—usury. “O you who believe, keep your duty to Allah and relinquish what remains [due] from usury, if you are believers. But if you do [it] not, then be apprised of war from Allah and His messenger; and if you repent, then you shall have your capital. Wrong not, and you shall not be wronged.” In the same Sūrah God forbids usury but not Bai', trading, or buying. At another place God's commands clear the way for investments. “O you who believe, devour not your property among yourselves by illegal methods, although you may engage in trading by mutual consent. And kill not your people. Surely Allah is merciful to you.”The Islamic merchant tried to follow this system of ethics.
A Monetary History of the Ottoman Empire
The Ottoman empire stood at the crossroads of intercontinental trade at the dawn of the era of capitalism. This volume examines the monetary history of that empire from its beginnings in the fourteenth century to the end of the first world war. Through a detailed examination of the currencies and related institutions of an empire which stretched from the Balkans through Anatolia, Syria, Egypt and the Gulf to the Maghrib, the book demonstrates the complexity of the monetary arrangements and their evolution in response to both local developments and global economic forces. The volume also affords some valuable insights into social and political history and the evolution of Ottoman institutions. This is an important book by one of the most distinguished economic historians in the field.