The impact of the financial crisis on the global economy: can the Islamic financial system help?
Abstract
Purpose
The aim of this paper is to analyse the different measures taken by the G7 and G20 leaders to face the current global financial crisis and to show whether such decisions represent a return to protectionism.
Design/methodology/approach
The paper proposes the introduction of a new economic system based on Islamic banks' principle which calls for cancelling interests. This line of thinking might solve speculation problems and put this type of crisis to an end.
Findings
This financial crisis pushed most developed countries to lower their banking rates and to implement null‐approximating interest rates, a move which replicates the principle adopted by Islamic banks.
Originality/value
The paper represents a point of view on the financial crisis, the return to protectionism and the role of Islamic banking.
Keywords
Citation
Trabelsi, M.A. (2011), "The impact of the financial crisis on the global economy: can the Islamic financial system help?", Journal of Risk Finance, Vol. 12 No. 1, pp. 15-25. https://doi.org/10.1108/15265941111100049
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited