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The concepts of complexity, endogeneity and circular causation – Myrdal's term was cumulative causation – are shown to be interrelated ones in configuring an economic model in the framework of systemic embedding and its empirical application.

The ensuing framework of economic modeling with complexity provides a controllable and predictable overarching worldview. Anomie in the economic universe and its embedded world‐system are analytically rejected. This consequence is due to the epistemic nature of modeling that combines complexity, endogeneity, and circular causation for attaining predictability and controllability, even in the face of complex systemic perturbations. The epistemology of unity of knowledge contrasted with rationalism is treated as the foundational worldview. An illustrative empirical work is given to convey the conceptual model and its applied viability.

Both the theoretical and empirical results point out how the induced effects of knowledge flows in reference to the epistemology of unity of knowledge continuously improves the complementary relationships of the evolutionary learning fields, and rejects marginalism as being logically non‐sequiter in such epistemic systems.

More variables and data would increase the explanation of the continuous simulation in the evolutionary learning world‐system model.

More data would increase the versatility of the empirical exercise.

The study is based on the idea of social and economic interface in extending the scope of economic modeling.

The paper is very original in the area of heterodox economics that questions orthodox economic postulates and presents the complex methodology by circular causation method instead.

The purpose of this paper is to explain the structure of Islamic monetary transformation into 100 percent reserve requirement monetary system in terms of the foundational epistemology of the unity of divine knowledge (tawhid). This approach is a scholarly originality in the field of epistemological formalism concerning Islamic theory and perspectives in economic reasoning in comparative perspectives.

The role of micro-money pursuing projects and real economic exchange relations is shown to arise by a natural causality in the ethical social economy (SE). This results in a microeconomic perspective of the quantity theory of money with ethical and social implications. A comparative study of endogenous money in the quantity theory of money points out significant differences between the theory of endogenous money in Islam and mainstream methodologies. A formal model of micro-money and its organismic endogenous relationship with the real economy is formulated with the goal of realizing social well-being, economic stabilization, and sustainability of development regimes.

This is a conceptual paper, though with the potential for continued work in applying the theory of micro-money in the Islamic methodological perspective of unity of knowledge. This is an original contribution of this paper. Islamic economists have not been able to produce a rigorous theory of micro-money. They have also not been able to situate the study of Islamic economics with its specific contribution to the field of the nature of money in project-specific financing of Islamic projects by the money-finance-real economy inter-causal relations. Thus, the findings of this paper, though of the conceptual nature, open doors to a vast field of methodological development and its application to the problem of micro-money modeling. Such a conceptual finding arising from the methodological theory of unity of knowledge and applied to the topic of micro-money along with some examples of potentiality of these approaches constitutes a vastly original field of findings as contribution. Thereby, an analytical model is established in the Islamic social economy (ISE) perspective. The model is used to explain monetary transmission and functioning of monetary policy with instruments that avoid interest rate and comply with Islamic financing requirements. The resulting model of money, finance, and real economy (MFE) systemic interrelationship in reference to the epistemology of unity of knowledge leads into the construction of a 100 percent reserve requirement monetary system with the gold-backed micro-money as currency complementing real economic transactions.

The present paper is of a conceptual type based on the essential ontological and epistemological foundation of Islamic social and economic thought and bearing a deeply scientific implication. The conceptual part of this paper becomes a study in the foundations. The second part follows into the study of application in the real world of micro-money in terms of financing projects. Micro-money pursues projects in the Islamic economy due to its very nature of ethical and social choices. The paper shows that such a micro-money transmission is realized by the money-finance-real economy integrated model. Thereby, some real-world examples of such transformations are given. All these together substantiate the conceptual-analytical-empirical nature of the study conducted.

The development of the micro-money transmission system of generalized circular causation interrelations between MFE activities as a return to 100 percent reserve requirement monetary system with the gold standard is the profound theory that has been propounded. Its applied perspectives are implied through the MFE-model wherein micro-money pursues social projects. Furthermore, the possibility and practicality of such a conceptual model of micro-money and its transmission mechanism in the real economy are established by real-world examples of kinds of micro-money that are found to circulate or are recommended by some studies in the literature.

The conceptual part of the paper presents a model of generalized epistemological model of unity of knowledge characterizing the MFE circular causal interrelations as the organismic meaning of social ethics and evolutionary learning. The social implications are the epistemic foundations of the derived model in the midst of choices of life-fulfillment projects that micro-money finances and the economy sustain.

This is an original paper premised on the general and the specific Islamic epistemological criterion of unity of knowledge as a generalized system theory. It is now particularized to the case of money and real economy by using the Islamic perspective of creating conditions to regenerate resources continuously in SE with ethical implications. The paper is equally informative to all who like to understand the social and ethical nature of endogenous relations between money and the real economy as two great institutions of the national economy. These together bestow well-being to the society at large in the construction of SE. Specific attention in this regard is given to ISE.

The purpose of this paper is to bring out the topic of ethics and economics in reference to the nature of complementarities that can exist between monetary and fiscal activities. The connector in such complementarities is the unity of knowledge that can be generated in the inter-causal relations between monetary and fiscal activities.

The methodology adopted is of measuring out by quantitative modeling how well there exists complementary relations or otherwise between the Central Bank and commercial bank in order to mathematically explain the role of participatory learning behavior using money, debt, and spending variables.

The argument placed takes the conceptual form of result to show that there would be a prolonged extension of the non-inflationary and technological induction of economic growth in a regime of complementing money and fiscal policies.

The role of the quantity of money in a non-inflationary economic growth is set against the background of the tripartite inter-causal relationships between the Central Bank, the commercial bank, and the real economy. Analytical methods used bring out the role of knowledge in the inter-causal relations termed as circular causation for the attainment of social well-being in response to a stable and advancing economy with the ethicality of unity of knowledge.

This paper aims to address the important issue of world food pricing from a new perspective of demand, supply production and preferences.

This paper reviews the models of demand and supply and introduces the author's own modeling idea in this field of global food pricing and production.

There is no such thing as permanent food scarcity, and that food scarcity is as much an ethical problem as is artificially generated scarcity of the good things of life, the basic needs of life, on which life has a fair share. The paper goes on to explain a relational model of learning to understand complementarities between the basic needs, amongst which essentially is food as a globally provisioned social good. Also endemic in this transformation are the preferences that conscious consumers ought to have, the production that appropriate technology should bring about, and the supply as an elastic function of price in a basic‐needs regime of food production and pricing.

Further statistical data needed for estimation.

The paper explains such a relational model of ethically‐induced perspectives on food demand, supply, production and pricing. The paper then investigates how the same issues can be examined in the conventional large‐scale econometric models against the data that are available. The paper suggests revisions in such econometric models in the light of the ethically‐induced relational model for understanding the issues underlying food demand, production, supply and pricing.

Several philosophical questions in regard to the appropriateness of the conventional models that fall short of addressing such essential issues, and thus also fail to predict behavior and forecast future, are examined. Some policy, program and strategic implications of the study are pointed out in the analytical conclusion.

The paper goes on to explain a relational model of learning to understand complementarities between the basic needs, amongst which essentially is food as a globally provisioned social good. Also endemic in this transformation are the preferences that conscious consumers ought to have, the production that appropriate technology should bring about, and the supply as an elastic function of price in a basic‐needs regime of food production and pricing. The paper explains such a relational model of ethically‐induced perspectives on food demand, supply, production and pricing. The paper then investigates how the same issues can be examined in the conventional large‐scale econometric models against the data that are available.

This paper aims to unveil the impact of government policy, socio-economic variable, Zakat Infaq Shadaqah (ZIS) and financing of Baitul Maal wat Tamwil (BMT) toward severe problem of poverty in Indonesia.

The paper considers dynamic circular causation model to produce proper solution on Indonesian style of poverty that hitherto remain unresolved.

All variables including ZIS, government policy, socio-economic variable and BMT financing have an impact toward poverty reduction.

This paper confined to the scope of poverty that occurred in Indonesia only, and therefore all variables and literatures derived from Indonesian pedigree on poverty.

This paper implies that government policy will be shifted toward focusing on extending subsidy for rural society to uplift their income by involving in more real sector.

This paper considered to be scarce as focusing only for Indonesian style of poverty by using dynamic circular causation model as a solution.

Aims to conceptualise a relational epistemology of development planning emanating from the episteme of oneness of Allah as the worldview of unity of knowledge and to make it empirically viable by combining statistical quantification and real‐time simulation in the spatial dimension.

These two estimation approaches and the empirical results are sequentially interconnected; showing how statistical results that are always static in nature can be dynamically represented by real‐time graphical simulation in spatial representation.

The policy implication underlying the normative issues interconnecting the statistical results and the spatial dimension real‐time simulation results by vivid simulation is pointed out.

The results are impressive for guiding policy in cases where there are negative partial elasticity coefficients between sectoral gross domestic product and total employment. The same model can be extended in much broader contexts of development planning in inter‐sectoral, national, regional, and global perspectives.

Undertakes an epistemological formulation of ethico‐economics. This formulation challenges the neo‐classical and macroeconomic foundations of mainstream economics and then presents the rigorously analytical depths of ethico‐economics. Traces the developments, the praxis of the rational precept of economic science from its Hellenic roots as this found inroads into the thinking of the classical, Austrian institutionalists and political economists. Shows to be logically flawed several areas of general equilibrium and market equilibrium relations that we face without question in a pedagogical presentation of economic theory. Even the microeconomic and macroeconomic dichotomy is a kind of duality in economic reasoning that has the traces of Kantian dualism in it. Hence, in none of the received economic doctrines the circular cause and effect of the epistemic and the ontic roots of human reasoning are unified together to give a truly interactive view of economic activities embedded within the larger ecological complex. To this complex belong the inter‐relationships that comprehend life, experience, praxis and the totality of the socio‐scientific order. Presents such a unified epistemic‐ontic circular causation as the praxis of the ethico‐economic world view. It is substantially different to, and more revolutionizing than, the ethically neutral, ethically exogenous, and interaction‐benign constraint of mainstream economics.

The purpose of this paper is to formalize a general equilibrium circular causation relationship model in the Islamic economic framework between wealth tax (Zakat), Islamic bank and the real economy.

Mathematical modeling along with explanation.

The integrative interrelationships can be formalized only under the assumption of unity of knowledge as derived from the foundation of oneness of the divine law (shari’ah) according to the Qur’an, Prophetic traditions (Sunnah) and social discourse.

A future work would be to empirically estimate the general equilibrium model.

A guidance to Islamic banks on the constructive utilization of Zakat fund for productive transformation in the real economy.

A general equilibrium model guided by the episteme of oneness of the divine law at work, hence unity of knowledge at work in real problems of ethics and economics according to the Islamic worldview.

The basis of the present financial crisis, which is bound to continue inflicting its venom because of structural problems of society, economy, finance, and institutions, is the insatiable preferences of households and investors that fuel excessiveness in the real estate market. Then there is the contagion that this kind of preference has on the economy and the foreboding uncertain market expectations everywhere. Finally, the excessiveness is allowed to survive and proceed on with unrelenting animal spirit by weak government polices, outmoded understanding of the economic and financial world-system, being unable to simulate the otherwise complex system by a spent-out methodology.