Moral Economics: Analysis of Islamic Economics and its Framework

This report provides an overview of moral economics, with a particular focus on Islamic economics. It begins by defining Islamic economics as a system focused on the allocation of scarce resources to enhance human well-being, differing from conventional financial systems. The report then argues that Islamic economics can be understood as a form of moral economics, emphasizing the ethical considerations within the field. Finally, the report places Islamic economics within the context of heterodox economics, highlighting its departure from mainstream economic methodologies and its emphasis on societal and institutional factors, aligning it with broader heterodox schools of thought. The report also includes references to support its arguments.

Running head: MORAL ECONOMICS
Moral Economics
Name of the Student
Name of the University
Author Note

1MORAL ECONOMICS
Table of Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................2
Answer 3:.........................................................................................................................................2
Reference.........................................................................................................................................4

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Answer 1:
The Islamic economics has existed in the global economic scenario as a concept, though
there has not yet been any unanimously agreed definition of the same. However, from the
different notions existing, the Islamic economics can be considered a study of human wellbeing
achieved through proper allocation of scarce resources. It is a discipline, which is beyond the
conventional notion of financial and banking in the Islamic systems (Naqvi 2016).
Answer 2:
The Islamic economics, though existing for quite some time, as a different branch in
global economics altogether, does not have any particular unanimously agreed definition or any
specific structure or methodology, which is relevant to the conventional and contemporary
economics. The basic notions in this branch of economics deals with moralizations, which are
relevant to all the religions and do not offer anything substantially different from that. For this
reason, the Islamic economics can be framed as a moral economics and analyzed with this
consideration (Naqvi 2016).
Answer 3:
The heterodox economics is a school of thought in economics, which includes the
methodologies, which are outside the domain of the mainstream economics. The heterodox
school of thought deals with the nexus of institutions, history and the societal structure, which

3MORAL ECONOMICS
often becomes irrelevant if considered from the angle of conventional and mainstream
economics. The Islamic economics, being one of such unconventional economics, which does
not follow any mainstream methodological or structural construct and is based on several
notions, which are relevant to the society in general, can be considered to be a member of the
heterodox school of thought (Van den Berg 2016).

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Reference
Naqvi, S.N.H., 2016. Perspectives on Morality and Human Well-being: A Contribution to
Islamic Economics. Kube Publishing Ltd.
Van den Berg, H., 2016. International economics: A heterodox approach. Taylor & Francis.