Asalaam o Alaikum fellow Muslims,
I have been thinking about Interest free economy and it's impact on inflation, for quiet sometime now. IMHO an interest based economy is the root cause of inflation throughout the world.
I found a nice article (not related in any way to Islam) and thought to share it with you.
One problem in Interest free economy, for which I cannot find any solution, is the case of loans. For start-up business, nobody is going to lend you money at zero interest. I think an Islamic bank can provide a loan to a start-up business by buying machinery/land/building etc. and getting fixed monthly installments. What do you think?
Can anyone enlighten me?