Publication:
Risk sharing in the age of crises
Abstract
In her book, Payback, 2008, Margaret Atwood claimed: "In Heaven, there are no debts, all have been paid, one way or another; but in Hell there's nothing but debts, and a great deal of payment is exacted, though you can't ever get all paid up. You have to pay, and pay, and keep on paying. So Hell is like an infernal maxed-out credit card that multiplies the charges endlessly." Publication of this book coincided with the Crisis of 2007/2008. Since then, there has been a proliferation of books on the subject of debt, beginning with a book by Reinhart and Rogoff, This Time Is Different. In the book, the authors argued that "though labeled as banking or currency, or even balance of payment crises--all financial crises are at root debt crises. Massive accumulation of private speculative debt in the run up to the 2007/2008 crisis showed that this time was no different". Aside from many books, well-researched theoretical and empirical papers published since then have established a nexus between credit, debt, leverage and onset of financial crisis.
Keywords
Risk sharing , Islamic finance
Citation
Mirakhor, Abbas. (2016). Risk sharing in the age of crises. IF Hub, 1 (August 2016), pp. 8-11.
Publisher
INCEIF