Publication:
Debt is debt, even if it's Shariah-compliant
Abstract
In a book aptly titled 'This Time Is Different', Rogoff and Reinhart, two prominent economists, show that every single financial crisis over the last 800 years has had a single root cause - excessive debt. It appears that what begins as borrowing for the funding of development infrastructure can, as it builds, lead to a spiralling of debt and financial crisis. There is a circular and reciprocal relationship between debt, leverage, vulnerability and financial distress. This applies to all borrowers, governments, corporations or other entities.
Keywords
Debt , Shariah , Risk sharing , Islamic banks
Citation
Bacha, O. I. (2019). Debt is debt, even if it's Shariah-compliant. In The Malaysian Reserve, (22 April 2019).
Publisher
TMR Media Sdn Bhd
DOI
Files
debt_debt_even_Shariah-compliant_obiyathulla.pdf
Size: 400.8 KBFormat: pdf
Views: 2 Downloads: 13