Islamic Economics - The Islamic Economics method

Islamic Economics - The  Islamic Economics method, Any economic system based on an ideology that provides the foundation and goal on the one hand, and the axioms and principles on the other. The process that was followed by a set of axioms and principles that are intended to get closer destination system is the cornerstone of a system that can be tested. Every economic system create a framework in which a community can take advantage of socio-economic and natural resources for the benefit of human production and distribute the results of its production for the sake of consumption. The validity of the economic system can be tested by internal consistency, incompatibility of various systems that regulate other aspects of life, and likely to evolve and grow.

A system to support Islamic economics should be formulated based on the Islamic view of life. Various axioms and principles in such a system should be determined exactly and functionalization process should be explained in order to demonstrate the purity and its applicability. However, the real difference should be drawn between the Islamic economic system and every order that comes to him. In Islamic literature about the economy, little attention has been given to this problem, but there is discussion about Islamic economics is still confined to his legal background or sometimes only accompanied by some economic principles in Islam. The study of economic principles was only slightly touched on the economic system.

In addition, a distinction must be drawn between the part of Islamic jurisprudence that addresses commercial law (fiqh muamalah) and Islamic economics. The first part sets the legal framework for the benefit of the last section, while the latter examines the process and control the human activities related to production, distribution and consumption in Muslim society. The lack of distinction between muamalah jurisprudence and Islamic economics is one of the misconceptions in the literature on Islamic economics, so often an economic theory turns into a restatement of the Islamic law. Another thing that is not profitable in the discussion of Islamic economics and fiqh muamalah is causing the disintegration and loss of overall linkages with economic theory.

The study of history is very important to the economy, because history is the laboratory of mankind. Economy, as one of the social sciences need to go back to history in order to carry out experiments and far-term trend of decrease in a variety of economic changes. History provides two main aspects to the economy, namely the history of economic thought and the history of economic units such as individuals, corporate entities and economics. Studies on the history of economic thought in Islam as it would help find sources of contemporary Islamic economic thought on the one hand and on the other side will give us the possibility to gain a better understanding of Islamic economic thinking about the trip so far. Both will enrich the contemporary Islamic economy and opening wider range for the conceptualization and application.

But there are two dangers in studying about the history of Islamic economic thought, the first, the danger is too rigid and taqlid between theory and application, which is too stiff to use a benchmark based on the application contained in the earlier and less innovation and development of a theory based on the Qur 'an and Sunnah as well as theories based on different situations and conditions are less applicable. Second, the restriction theory with history. The second danger comes when the Islamic economists consider it binding on the historical experience of the current period. This is reflected in the inability of Islamic economists to develop Islamic economics is based on the Qur'an and Sunnah directly, which in turn lead to economic theory of Islam are not merely historical and ideological nature.

Existing Islamic literature on the economics of using these two kinds of methods, namely

1. Methods of deduction-Deduction method developed by Islamic economists and jurists. Deduction method was applied to the modern Islamic economics to display the principles of the Islamic system and its legal framework in consultation with Islamic sources, namely the Qur'an and Sunnah.  
2. Method of retrospective thinking-Methods A retrospective thinking used by many writers of contemporary Muslims who feel the pressure of poverty and underdevelopment in the Islamic world and trying to find different solutions to economic problems by returning Muslims to the Qur'an and Sunnah to seek support for these solutions and test with attention to the instructions of God. 

Read Also:

Islamic Economics

• Definition of Islamic Economics
• Design of Islamic Economics
• Economy in Islam According to the Experts
• Islamic Economics method
• Law Resources on Islamic Economics

Islamic Banking

• Introduction of Islamic Banking
• Definition of Islamic Banking
• Islamic Banking, Definition and History
• History of Islamic Banking
• Islamic Banking Principles
• Islamic Banking Products
• Scheme of Islamic Banking Products
• Basic Concepts of Accounting for Islamic Banking
• Islamic Economics and Islamic Banking, the basic concepts andrelationships
• The Difference between Islamic banking and Conventional Banking