Wealth Inequality, Asset Redistribution and Risk-Sharing Islamic Finance: 1 (De Gruyter Studies in Islamic Economics, Finance and Business, 1) - Hardcover

Akin; Tarik; Mirakhor; Abbas

Hardcover

ISBN 10: 3110583739 ISBN 13: 9783110583731

Publisher: De Gruyter Oldenbourg, 2019

Synopsis

Wealth inequality has been not only rising at unsustainable pace but also dissociated from income inequality because of the fact that wealth is increasing without concomitant increase in savings and productive capital. Compelling evidence indicates that capital gains and other economic rents are mainly responsible for wealth inequality and its divergence from income inequality. The main argument of the book is that interest-based debt contracts are one of the drivers of wealth inequality through creating disproportional economic rents for the asset-rich. The book also introduces the idea of risk-sharing asset-based redistribution, which is a novel and viable policy proposal, as an effective redistribution tool to address the wealth inequality problem. Furthermore, a large-scale stock-flow consistent macroeconomic model, which is step by step constructed in the book, sheds light on the formation of wealth inequality in a debt-based economy and on the prospective benefits of implementing risk-sharing asset-based redistribution policy tools compared to traditional redistribution policy options. The research presented in this book is novel in many respects and first of its kind in the Islamic economics and finance literature.

About this title

About the Author

Tarik Akin, Undersecretariat of Turkish Treasury; Abbas Mirakhor, retired Professor of Economics and Finance, USA

Edition details

• Publisher: De Gruyter Oldenbourg
• Publication date: 2019
• Language: English
• ISBN 10: 3110583739
• ISBN 13: 9783110583731
• Binding: Hardcover
• Edition number: 1
• Number of pages: 195