Revisiting Islamic Economics: Comment on Baaquie (2023)

Abstract

This article is a comment on Baaquie (2023). It revisits important discussions on Islamic Economics. I argue that historically Islamic economics is juxtaposed with capitalism and communism with the intent that somehow Islamic economics was capable of improving on the performance of both these systems. Baaquie (2023) is an interesting and important contribution as it tries in its own way to revive the old debates on Islamic economics but at the same time setting a direction which in many ways is also novel. In this “comment” on Baaquie (2023) I discuss the academic reasoning used to make the arguments, the paper’s departure from the existing literature on Islamic economics along with the main argument of the paper. Here I pay particular attention to Baaquie’s (2023) approach of distinguishing the micro and the macro economy in an attempt to establish the macroeconomic foundation of Islamic economics.