EN
The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness
Abstract
As a response to the Great Depression of 1930s, some prominent US economists came up with the “Chicago Plan”, which proposed full reserve banking backed by government-issued money and separation of the monetary and credit functions of the banking system as important pre-conditions for financial stability. The idea behind the Chicago Plan can be confidently claimed as a conventional version of the Islamic precepts of risk-sharing, deposits for safe-keeping and prohibition of debt financing. What makes the Chicago Plan relevant and important for today is that the latest Global Crisis once more underlined the simple fact that “this time is not different” so policy-making needs fresh and even radical reconsideration of the theory and policies. The Chicago Plan is indeed such a radical look into the gist of the problem. Moreover, the Chicago Plan and the discussions around it provide an invaluable benchmark to understand the great potential of the Islamic finance on financial stability. This paper examines theoretical underpinnings of the Chicago Plan; its relevance to Islamic finance and financial stability. Following the theoretical part, the modus operandi of the Chicago Plan is illustrated by using sectoral balance sheets of the main sectors
Keywords
Details
Primary Language
Turkish
Subjects
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Journal Section
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Publication Date
July 1, 2015
Submission Date
July 1, 2015
Acceptance Date
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Published in Issue
Year 2015 Volume: 1 Number: 2
APA
Akın, T., & Dolgun, M. H. (2015). The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness. Uluslararası İslam Ekonomisi Ve Finansı Araştırmaları Dergisi, 1(2), 87-111. https://izlik.org/JA68DM69DA
AMA
1.Akın T, Dolgun MH. The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness. IJISEF. 2015;1(2):87-111. https://izlik.org/JA68DM69DA
Chicago
Akın, Tarık, and Muhammed Habib Dolgun. 2015. “The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness”. Uluslararası İslam Ekonomisi Ve Finansı Araştırmaları Dergisi 1 (2): 87-111. https://izlik.org/JA68DM69DA.
EndNote
Akın T, Dolgun MH (July 1, 2015) The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness. Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi 1 2 87–111.
IEEE
[1]T. Akın and M. H. Dolgun, “The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness”, IJISEF, vol. 1, no. 2, pp. 87–111, July 2015, [Online]. Available: https://izlik.org/JA68DM69DA
ISNAD
Akın, Tarık - Dolgun, Muhammed Habib. “The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness”. Uluslararası İslam Ekonomisi ve Finansı Araştırmaları Dergisi 1/2 (July 1, 2015): 87-111. https://izlik.org/JA68DM69DA.
JAMA
1.Akın T, Dolgun MH. The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness. IJISEF. 2015;1:87–111.
MLA
Akın, Tarık, and Muhammed Habib Dolgun. “The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness”. Uluslararası İslam Ekonomisi Ve Finansı Araştırmaları Dergisi, vol. 1, no. 2, July 2015, pp. 87-111, https://izlik.org/JA68DM69DA.
Vancouver
1.Tarık Akın, Muhammed Habib Dolgun. The Chicago Plan from the Lenses of Islamic Finance: Implications for Financial Stability and Indebtedness. IJISEF [Internet]. 2015 Jul. 1;1(2):87-111. Available from: https://izlik.org/JA68DM69DA