Islamic Chicago Plan

"Elimination of Interest and the Iceland Plan for Monetary Reform"

ABSTRACT: It has recently been widely realized that private banks create money. Most of the money circulating in the economy is created by private banks and takes the form of interest based loans. This leads to a large number of economics problems which include (a) frequent monetary crises, (b) injustice and increasing inequality, (c) unnecessary spread of interest based transactions and debt, and (d) investments in speculative and unproductive areas crowd out real productive investments as well as social sector investments. The Iceland plan for monetary reform is based on the idea of Sovereign Money, which gives government the exclusive power to print money. This is very much in line with Islamic principles. Implementation of the plan would address all four problem mentioned above, leading to elimination of interest, greater justice and equality, and greater investment in social sector as well as the real productive sector.

An Islamic Version of the Iceland Plan for Monetary Reform -- also submitted for Conference: ICIBF 2016, Mecca in March 2106 A transcript of An ISlamic Chicago Plan (4144 word version, abbreviated for Conf Presentation) 1hr 41m 17s Video Lecture (flv version) probably classroom -- An Islamic Chicago Plan

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Asad Zaman