TY - BOOK ID - 84545023 TI - Stabilization and Growth in an Open Islamic Economy. AU - International Monetary Fund. AU - International Monetary Fund PY - 1988 SN - 1462333931 1455298891 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Balance of payments KW - Banking KW - Banks and Banking KW - Banks and banking KW - Banks KW - Commercial banks KW - Current Account Adjustment KW - Current account deficits KW - Depository Institutions KW - Exports and Imports KW - Financial Economics KW - Financial Instruments KW - Institutional Investors KW - International economics KW - Investment & securities KW - Investments: Stocks KW - Islamic Banking and Finance KW - Islamic banking KW - Islamic countries KW - Micro Finance Institutions KW - Mortgages KW - Non-bank Financial Institutions KW - Other Economic Systems: Public Economics KW - Pension Funds KW - Short-term Capital Movements KW - Stocks UR - https://www.unicat.be/uniCat?func=search&query=sysid:84545023 AB - Islam proposes the replacement of an interest-based financial system with one which operates on the basis of risk and profit sharing. Using a general equilibrium model, this paper investigates some open-economy implications of the adoption of Islamic banking for growth and stabilization of the economy. It analyzes the long-run effects of Islamic banking on international capital flows and on the economy’s capacity to adjust to disturbances. It concludes that monetary policy can be used effectively for stabilization purposes and that disturbances to asset positions are absorbed efficiently in an Islamic financial system. ER -