In the medieval period, the issue of interest was highly significant in economic discussion. Despite a shared vision of money, the Islamic world and Christian West in the late middle ages had different attitudes to the legitimacy of interest. This divergence has been interpreted by neo-Institutionalist theory in the light of the religious institutions’ power to influence the economic side of society. Conclusions differ if the analysis comes from a Veblenian Institutionalist perspective. This approach in fact shows that while in Christian Europe interest rate theory developed hand-in-hand with the unfolding of the multiple functions of money in a society gradually evolving towards capitalism and with the secularization of economics, in the Islamic West, partly due to a different development of the socio-economic fabric, there were contrasting outcomes both in the role played by monetary financial institutions and in the developments of theoretical thought.

A margin Note on Medieval Thought about Money and Interest Rate

FIGUERA, Stefano
2017

Abstract

In the medieval period, the issue of interest was highly significant in economic discussion. Despite a shared vision of money, the Islamic world and Christian West in the late middle ages had different attitudes to the legitimacy of interest. This divergence has been interpreted by neo-Institutionalist theory in the light of the religious institutions’ power to influence the economic side of society. Conclusions differ if the analysis comes from a Veblenian Institutionalist perspective. This approach in fact shows that while in Christian Europe interest rate theory developed hand-in-hand with the unfolding of the multiple functions of money in a society gradually evolving towards capitalism and with the secularization of economics, in the Islamic West, partly due to a different development of the socio-economic fabric, there were contrasting outcomes both in the role played by monetary financial institutions and in the developments of theoretical thought.
Interest; Money; Islamic Economic Thought; Christian Economic Thought
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/20.500.11769/19923
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