Interest Free Wage Linkage of Personal Loans and Mortgages

There is a translation into Hebrew: ʸʫʹʬ ʺʥʩʹʩʠ ʺʥʠʺʰʫʹʮʥ ʺʥʠʥʥʬʤ ʺʣʮʶʤ , ʺʩʡʸ ʠʬʬ Abstract A case for linkage without interest to the average wage is presented. The accuracy and stability of index formulae is examined and price linkage is compared to wage linkage. The linkage of personal loans and mortgages and relevant Halachic questions are discussed. It is explained how accounting in terms of the average wage can be used as a basis for discouraging fraud and encouraging honesty. The influences of different linkages on economic stability are described. 1) Except for the new format, a corrected explanation in section 2, minor corrections, small additions, changes in the order of the material, this version of the paper is identical to the version dated November 1998-ʰʹʺ ʥʬʱʫ " ʨ. We have made explicit the nature of the controversy regarding the formula for computing a price index and have taken this into account in our conclusions and suggestions. 2) The discussion of reciprocal work agreements in the version of this paper dated May 1994-ʰʹʺ ʯʥʩʱ " ʣ , contained an error which has been corrected. 3) This work is based on [14] though the discussion of accuracy in section 2 is taken from [11] which treats this issue in detail. Note of thanks ʤʬ ʥʣʥʤ ' ʥʣʱʧ ʭʬʥʲʬ ʩʫ ʡʥʨ ʩʫ. Thanks to the staff and students at Jerusalem College of Technology-Machon Lev, to the rabbis and Torah scholars, to the colleagues, friends and my family, for their encouragement, comments, opposition and criticism. As there are many, I will not single out any one by name, but sincere thanks to everyone. Notice: It is permitted to copy this paper but only in its entirety.