When financial claims and money supply expand without a matching increase in real goods and services, more purchasing power competes for the same output. This gap can fuel inflation.
Asset-backed financing seeks to keep financial expansion connected with corresponding goods, services and productive assets.
This point should be read together with the surrounding rules, because Islamic financing is evaluated by the complete legal and commercial structure rather than by one isolated clause.
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The Foundations of Islamic Economic Thinking
When financial claims and money supply expand without a matching increase in real goods and services, more purchasing power competes for the same output. This gap can fuel inflation.
Asset-backed financing seeks to keep financial expansion connected with corresponding goods, services and productive assets.
This point should be read together with the surrounding rules, because Islamic financing is evaluated by the complete legal and commercial structure rather than by one isolated clause.