01650cas a2200241 a 4500 AALejournalIMF007791 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451921137 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Stabilization and Growth in an Open Islamic Economy. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Islam proposes the replacement of an interest-based financial system with one which operates on the basis of risk and profit sharing. Using a general equilibrium model, this paper investigates some open-economy implications of the adoption of Islamic banking for growth and stabilization of the economy. It analyzes the long-run effects of Islamic banking on international capital flows and on the economy's capacity to adjust to disturbances. It concludes that monetary policy can be used effectively for stabilization purposes and that disturbances to asset positions are absorbed efficiently in an Islamic financial system. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/022 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/022/001.1988.issue-022-en.xml IMF e-Library