It is widely known that Muslim society inherited an interest based financial intermediation system from others instead of developing their own banking system. However, Muslim Economists and scholars around the world made efforts to have and develop their own financial intermediation since there...

This paper investigates the time-varying dynamics of global stock volatility, commodity prices, and domestic output and consumer prices. The main empirical findings of this paper are: (i) stock volatility and commodity price shocks impact each other and the economy in a gradual and endogenous...

The behaviour of aggregate consumption is conventionally understood from the perspective of the permanent income and life cycle hypotheses. Both of these hypotheses are deduced from the theory of constrained optimization as applied to a ‘representative agent’ that consumes and saves. An...

Executive Summary: • Many economists expect poor data to precede financial market weakness under the framework that buoyant asset markets reflect economic strength, and benign indicators would imply a rise in volatility is far from imminent • Rising financialization has amplified the impact...

Executive summary: • A flattening yield curve highlights Federal Reserve rate hikes’ inability to tighten financial conditions, as low long-term interest rates continued to induce institutional investors to “reach for yield” by moving up the risk ladder • Central banks initiating...

This paper questions the popular anthropological assumption that all purpose money rules in the West today. Contrary to the followers of Karl Polanyi in anthropology, modern as well as primitive money is special purpose money. It is argued further that serious difficulties and confusions arise...

BIS working paper highlighted monetary authorities’ asymmetrical policies that are “too timid” in leaning against financial booms but too aggressive and persistent in leaning against financial busts, thus giving rise to a debt trap. Disinflationary effects of globalization induced...

The relationship between money and macroeconomic variables such as output, inflation and unemployment is the basis of macroeconomic policy piquing the interests of both academic economists and policy makers especially in the aftermath of the Great Recession. With the Federal Reserve expanding...

The paper analyses the long-run creditworthiness of Pakistan. The analysis is conducted on time series data of the years 1972-2013. Two Probit Models are estimated by Maximum Likelihood Method. Three specifications of Probit Model of long-run creditworthiness of Pakistan are estimated. These...

We draw on the threshold analysis to examine the effect of foreign direct investment on growth in Sub-Saharan Africa. The growth literature is awash with divergent evidence on the role of foreign direct investment (FDI) on economic growth. Although the FDI-growth nexus has been studied in...