Exchange and Capital in the Moral Economy: A New Paradigm

Abstract

There are well established differences between conventional and Islamic economics in relation to the working of economic institutions like market. The conventional economic models do not capture the role of morals and values whereas; Islamic economics believes that morals and values play an important role in the working of institutions. Furthermore, a strong emphasis on morality and values is very important for the development and growth of society. In Islamic settings the individual and society are strongly interlinked and their economic behavior is not only determined by the worldly life but also on the life hereafter.