An Islamic Model for Stabilization and Growth

Praise for An Islamic Model for Stabilization and Growth
Foreword
Acknowledgments
Contents
Abbreviations
List of Figures
List of Tables
1 Introduction
	1.1 Significance of Macroeconomic Adjustment Policy Issues
	1.2 Senegal in Brief
	1.3 An Islamic Model of Stabilization and Growth
	1.4 Chapter Outline
	References
2 Overview of Current Macroeconomic Policy Issues and Challenges in Mainstream Economics
	2.1 Institutions, Structural Macroeconomic Reforms and Development
		2.1.1 Institutions and Development
		2.1.2 Institutions and Culture
		2.1.3 Institutions and Education
		2.1.4 Institutions and Media
		2.1.5 Assessment of the Institutions of Change
		2.1.6 Public Investment Policy
		2.1.7 Inequality and Poverty
		2.1.8 Financial Structure and Economic Development
		2.1.9 Global Issues on Ethics and Climate Change
	2.2 Macroeconomic Financial Stability
		2.2.1 Fiscal Policy Design
		2.2.2 Monetary Policy
	2.3 Conclusion
	References
3 Current Economic and Social Challenges and Islam
	3.1 Economic Growth Policies from an Islamic Perspective
		3.1.1 Islamic Institutions and Economic Growth
		3.1.2 Islam and Social Issues
		3.1.3 The Environmental Challenge
		3.1.4 Islamic Financial Infrastructure Development
	3.2 Macroeconomic Stability Policies in an Islamic Economy
		3.2.1 The Conduct of Monetary Policy in an Islamic Economy
		3.2.2 Islamic Liquidity Management Issues
			3.2.2.1 International Cooperation
		3.2.3 Islamic Fiscal Policies
	3.3 Survey of Islamic Macroeconomic Modeling Literature
	3.4 Data and Methodology of Simulation
		3.4.1 Data Issues
		3.4.2 Methodology Issues
	3.5 Conclusion
	References
4 Islamic Institutional Policy Framework
	4.1 Islamic View of Economic Development
		4.1.1 Individual Self-development
		4.1.2 Physical Material Progress and Growth
		4.1.3 Development of the Human Collective Toward Integration, Cohesion, and Unity
	4.2 Islamic Institutional Policy Framework
		4.2.1 Fundamental Axioms
		4.2.2 Rules Organizing the Legal and Regulatory Economic Environment
		4.2.3 The Islamic Concept of Economic Relations
	4.3 Conclusion
	References
5 Rules of Economic and Financial Operations
	5.1 Production Activities
	5.2 Expenditure: Consumption and Investment
	5.3 Rules of External Economic Relations
	5.4 Rules of Public Finance and Banking
		5.4.1 Rules of Public Finance
		5.4.2 Rules of Banking and Finance
	5.5 The Macroeconomic Policy Framework
		5.5.1 The Principles of Islamic Economics
			5.5.1.1 Decision-Making by the Economic Actors
			5.5.1.2 Functioning of the Economy as a Whole
			5.5.1.3 Interaction of Economic Actors with Each Other
		5.5.2 Design of the Macroeconomic Policy Framework
	5.6 Conclusion
	References
6 Sustainability of the Senegal Socioeconomic Model
	6.1 Real Sector Development
		6.1.1 Growth and Inflation
		6.1.2 Saving and Investment
	6.2 Fiscal Developments
	6.3 Money and the Banking Sector
	6.4 External Sector
		6.4.1 Senegal’s External Current Account Payments
		6.4.2 Foreign Debt and Debt Sustainability
	6.5 Country and Policy Institutional Assessment
	6.6 Social Indicators: Population, Employment, and Poverty
	6.7 Current IMF and World Bank Macroeconomic Adjustment Models for Senegal
		6.7.1 The International Monetary Fund Analytical Framework
			6.7.1.1 Variables of the Model
			6.7.1.2 Equations of the Model
		6.7.2 The World Bank Analytical Framework
		6.7.3 The Integrated Model of the IMF and World Bank Approaches
		6.7.4 Critics of IMF and World Bank Analytical Frameworks
	6.8 Current Macroeconomic Policies in Senegal and Perspectives
		6.8.1 Background: The Emergent Senegal Plan
		6.8.2 Macroeconomic Policies and Structural Reforms
		6.8.3 Recent Macroeconomic Estimations and Projections
		6.8.4 Country Policy Institutional Assessment
			6.8.4.1 Overall Islamicity Index Country Score
			6.8.4.2 Islamicity Indices Ranking
			6.8.4.3 Examination of Changes in the Sub-indices
	6.9 Conclusion
	References
7 Counterfactual Simulation of the Islamic Model for Senegal
	7.1 Synopsis of the Islamic Analytical Macroeconomic Framework
		7.1.1 Equations of the Model
			7.1.1.1 Equilibrium Condition in the Goods and Services Market
			7.1.1.2 Fiscal Balance Constraint
			7.1.1.3 The Balance of Payments Constraint
			7.1.1.4 Financial Assets market Equilibrium
			7.1.1.5 Behavioral Relations
			7.1.1.6 Calibration of the Model Parameters
	7.2 Counterfactual Simulation of the Islamic Model of Stability and Growth for Senegal
	7.3 Conclusion
	References
8 Implementation of the Islamic Model for Senegal
	8.1 Policy Recommendations
		8.1.1 Reforms in Institutions (Rules of Behavior)
			8.1.1.1 Role of the State
			8.1.1.2 Educational Infrastructure
		8.1.2 Reforms in the Real Sector and Trade
		8.1.3 Reforms in Public Finance
		8.1.4 Reforms of the Money and Banking Sector
	8.2 Sequencing of Policy Reforms
	8.3 The Financing of the Policy Reforms
	8.4 Expected Performances of the Islamic Model in Senegal
	8.5 Conclusion
	References
9 Conclusion
Appendices
Appendix A. Glossary of Terms
Appendix B
Appendix B (continued): Definition of variables (% of real GDP)
Appendix C
Appendix D. ECM estimation results of ARDL on real economic growth (GYR)
Appendix E. ECM estimation results of ARDL on the Investment Rate of Return (IRR)
Appendix F. Prohibition of Riba from sayings of the Prophet (pbuh). (Source: Sahih al-Bukhari)
Index