Journal of Iran's Economic Essays; an Islamic approach
Year:2018 | Volume:15 | Issue:29|Papers Count:7

The financial crisis in 2008 attracted the attention of the economists and central banks to the deficiencies of the common views on the nature of banks and their role in economy. Since an important prerequisite for micro-prudential and macro-prudential regulation is macroeconomic modeling including the financial sector, consistent monetary and fiscal policy making, and a correct and complete analysis about the nature of banks and the banking system, the present paper uses a descriptive-analytical method to investigate the three approaches to it. Thus, the common views about banks (“ financial intermediation” and “ deposit multiplier” ) are explained and criticized on the basis of monetary and accounting principles. Moreover, the correct view about the nature of banks ("money creation of individual banks") will be explained, citing the opinions of leading economists and central banks. Analyzing the arguments offered in support of the “ financial intermediation” and “ deposit multiplier” views shows that the main roots of misunderstanding the nature of banks are: the notion about money being a sort of commodity, fallacy of composition and the confusion of microeconomic and macroeconomic arguments, neglecting the double-entry bookkeeping principles, failing to differentiate between the banks’ and the central bank’ s balance sheet, and lack of attention to the implications of interest rates targeting policy by the central banks. Accordingly, some principles adhering to which can guarantee a correct analysis of banks is introduced, and some implications of “ money creation” view about banks in Islamic banking, monetary policy, banking regulation and macroeconomic modeling is explained.

Applying different methods and tools to finance Different economic sectors with risk and risk and return on investment and financing is always alongside And because of the investment decisions Always on the basis of and considerate relationship Between risk and returns. Investors should always invest in their decisions Consider the risk. Because of the importance and effectiveness of the risk, as well as the impossibility of eliminating risk It must identify, calculate and manage the risks. The need to pay attention to this issue is that Expansion and deepening of the financial market in the country should be to eliminate the country's restrictions on the attraction of capital According to religious considerations and, at the same time, respond to the basic needs of society It should be done by developing the capital market of Iran and diversifying its existing tools. Introduction of Intangible Bonds as a powerful financial tool for financing various economic sectors Considering the potential and actual risk assessment and design of risk coverage of these securities to expand and publicly accept it in Iran's financial system Can solve many challenges of Iran's financing system. In this paper, descriptive-analytic method was used using questionnaire data and AHP method We study the hypothesis that "Among the operational models of: Bonds Istisna'a, the Stock Exchange Organization model is the optimal model for risk coverage. " To examine this hypothesis, some risks of issuing embedded securities in the form Istisna'a model Parallel Stock market Istisna'a model indirect Studied The results show that the risk coverage among the operating models of embedded securities, the stock model is the best model for risk coverage.

We examined the resilience of Iran's economy over the years 2005-2014. To this end, a composite indigenous index comprise of the following variables is calculated: inflation rate, unemployment rate, exchange rate, ratio of budget deficit to gross domestic product, share of oil in the government budget, ratio of non-oil exports to imports, import ratio of intermediate and primary goods to total imports, total government budget to gross domestic product, ratio of government consumption to total consumption of the economy, export and import ratio to gross domestic product, underground economy, ratio of high education graduates to total government employees, Gini coefficient, literacy rates and main insured of social security organization. The empirical results indicate an increase in the Iran's economic resilience index. The highest figure in the index is in 2014 and the lowest is in 2005. The relationship between resilience index and GDP per capita indicates a positive relationship over the course of study, i. e with increasing economic resilience, GDP per capita also increases.

Issuance of Islamic securities (sukuk) is one of the innovations of recent decades that open bright opportunities on the Islamic financial system. These bonds based on Islamic contracts are designed to substitute for securities, especially bonds are considered usury. The risks of this tool is the most important aspects that should be considered in the design of financial instruments. The first step in risk management, identification of risks and the next step is to reduce or eliminate it, thereby encouraging investors to buy these tools, resulting in a growth market to be provided. In this article dealt with the management of credit risk and cover this risk. So far, the country's financial rules in Iran (rules of the Securities and Exchange Money and Credit Council and the Council) have been trying to pay guarantee obligations to cover credit risk for investors. We believe that the guarantor for the bonds, despite the many advantages, but also disadvantages, which is better than other methods should be used to cover this risk. In this paper recommended credit default swaps as a good way to cover sukuk credit risk.

Moral hazard in contracts, especially international oil contracts, is a key subject under the economics of information. In this article, considering the oil and gas industry specifications, oil contracts and moral hazard models, the proper model for evaluating buy-back contracts. Since moral hazard from both parties could be seen in oil contracts and both are maximizing their profit, despite the standard models, the employer (client) should consider two incentive constraints for both principal and agent. Accordingly, standard model is not proper to evaluate this type of contracts and two sided moral hazard models are more in compliance with oil contracts. The results say that in two sided moral hazard and non observable action of both party, no contracts touch first best conditions. In addition, short term essence of buy-back contracts, predefined proceeds of contract before starting point, fix interest rate, non flexibility of contract and defined obligations before operation, non flexibility of payment method from oil proceeds and lack of comprehensive reservoir study results in lack of incentive for selection of more optimal methods for for development oil fields with higher costs for maximizing mutual interests. Accordingly, buy-back contracts are not a second best optimal contract.

Corruption is a phenomenon of economic, political and cultural disorder, with more or less hazardous effects both in developed and developing countries. In this regard, North and colleagues emphasize that only in an open access system (democracy), corruption is controlled and other measures such as improving property rights, although they play an important role, but not enough to reduce significant corruption. As this phenomenon is considered one of the most important barriers to growth of developing countries such as Iran with resistance approaches to economy, therefore need to know the roots and deal with it has become seriously considered as country's development goals. The purpose of this study was first designed to identify the phenomenon of corruption in a general equilibrium analysis, and then to investigate the relationship of corruption, property rights and democracy, based on evidences from developing economies. For this purpose, a panel model is used to analyze relevant data from 53 selected developing countries for the period of 1996 and 2013. The results indicated a significant negative effect of democracy (-0. 49), property rights (-7. 56), economic growth (-0. 37) and investment (-5. 75) on the level of corruption. Moreover, the Gini coefficient of inequality (0/36) and political instability (19. 4) showed a significant and positive effect on the corruption index in selected economies. While the results have also shown, by increasing the degree of democracy and property protection as a new variable in the model, the relationship between corruption and democracy has increased, which shows that the impact of democracy on corruption is empowered with the property property protection variable.

This study explores the concept of social justice based on the ideas of four contemporary theorists. Hayek represents libertarians, Rawls the most prominent Philosopher of current century, Motahhari and Sadr as a thinker of Islamic concepts. Hayek believes social justice is misdealing and the striving for it will also produce highly undesirable consequences. He defines justice by rules of individual conduct. “ Spontaneous order” play essential role in his ideas. Rawls sees ‘ justice as fairness’ as answering to the demands of both freedom and equality, a challenge posed by the socialist critique of liberal democracy. In this regard justice is an agreement on principles which is reached arbitrarily in “ veil of ignorance” . Rawls's main guide in achieving principles of justice is maximin principle and the lack of awareness of individuals about the future social status. Motahari regards justice as observance of the law. He recognizes both the natural rights of the individual and the legal community. According to Shahid Motahari, the only way to legitimize and validate natural rights is to accept the purpose of the world order. In Sadr's view, although justice is one of the three principles of the general construction of Islamic economics, the position of justice is beyond the core and is the foundation stone of the Islamic School of Economics. Additionally, Islam has shown its sensitivity to the final makeup of facilities in society, with two principles: public cooperation and social balance.