"Islamic Finance Researches" (IFR)

Theoretical Dynamics of Usury and Interest Analysis in the Economic Thought of Scholastic Thinkers (12th to 17th Centuries); Implications for Islamic Economics

Document Type : Science - Research (Islamic Banking)

Authors

1 PhD student of Islamic Studies and Economics, Faculty of Islamic Studies and Economics, Imam Sadiq University, Tehran, Iran

2 Associate Professor, Faculty of Islamic Studies and Economics, Imam Sadiq University, Tehran, Iran

Abstract

Studying the background of the formation of economic institutions as well as the theoretical dynamics of its analysis in the face of a religious thought can have significant implications for Islamic economics and finance. For this purpose, this study examines the theoretical dynamics of interest and usury analysis in the economic thought of scholastic thinkers and examines its implications for Islamic economics. The results show that the early scholastic thinkers used two approaches, subjective and objective, as well as two mechanical and teleological methods to analyze usury. Nevertheless, factors such as the transition from formalism, extremism in the teleological view, the evolution of the worldview, and the modern confrontation with the precepts of the Shari'a caused the analysis of usury in scholastic thought to show a significant shift towards purposeful and subjective analysis. School thinkers had a considerable understanding of the difference between interest and usury, and therefore considered interest as an income imposed by external factors, and accordingly introduced the three components of loss, profit stop and risk as the main areas of interest. Finally, attention to the analysis and thematics of usury as a mission for religious thinkers, attention to subjective analytical approaches to human understanding of phenomena and the application of a goal-oriented approach along with the mechanical approach and paving the way for religious norms to be analyzed for Islamic economics and finance are among the most important implications of this study.

Keywords

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Volume 11, Issue 1 - Serial Number 21
February 2021
Pages 363-392
  • Receive Date: 06 October 2021
  • Revise Date: 24 January 2022
  • Accept Date: 02 February 2022