Can it be an alternative to mainstream interest based practices? Can it offer solutions with musharakah and mudharabah (risk-sharing) instead of charging interest (risk-shifting)?
in the traditional theories of interest the new classical economists have also an issue to explain interes from the assumption rational behaviour! So in a way interest is explained from intertemporal behaviour of consumers and economic trade offs by firms in terms of capital budgeting
Thank you Jan H Jansen , but does interest make sense or is it rational from the inter-temporal behaviour of consumers and economic trade offs by firms in terms of capital budgeting? Is it fair to charge interest on shifted risk to consumers or other firms?