Moral Economy And Its Impact On Economic Turmoil Of 2008-2009

The failures and bailed out of large banking and financial institutions during economic turmoil of 2008-2009, is an emblematic of the excessive and imprudent lending and securitisation activities. Most economist, politicians and commentators referred the crisis being a reminiscence of capitalism and its inherent greed. The conventional economics, which ignored â€Å"centrality of human beings and their well-being† (Asutay, 2007), has led to the emerging calls for economics well-being thus contributed to the rapid development in Islamic finance globally. Reilly (1990) commented that this â€Å"phenomenon is the search for a new and just economic and political structure to replace the unacceptable and/or unworkable socialistic or capitalistic systems† or in other words, a moral economy. The discussion hereafter is to look at how moral economy is defined, the articulations and implications and whether Islamic economics as being grounded on the axioms and foundational princ iples of Islam, can be considered as moral economy from both aspirational expectations and operational aspect of it, thus served as a distinctive moral economy system. Moral economy as defined by Sayer (2007) refers to â€Å"‘studies the moral norms and sentiments that structure and influence economic practices, both formal and informal, and the way in which these are reinforced, compromised or overridden by economic pressures†. Moral economy therefore, aims at a fairer economic model that is able to distributeShow MoreRelatedThe Monetary Policy Of Japan2450 Words   |  10 PagesThis essay will illustrate an analysis of the monetary policy of Japan and the impact of the global crisis of 2008-11 with the measures taken to recover from this crisis. 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