The aim of this research is to find monetary policy tools in usury free banking. We will review the ideas of Muslims in Iran and outside the Iran for this subject. In this work, we will explain the effects of monetary policies on economy. This article is about explanation of two subjects: In the first subject, reports about usury free banking and ways of absorbing granted facilities is presente...

We study the effects of usury limits on the market for auto loans and find little evidence of credit rationing. We show instead that loan contracting and the organization of the loan market adjust to facilitate loans to risky borrowers. When usury restrictions bind, auto dealers finance their customers’ purchases and raise the vehicle sales price (and loan amount) relative to the value of the u...

This paper studies the effects of interest rate restrictions on loan allocation. In 1714, the British government tightened the usury laws, reducing the maximum permissible interest rate from 6 to 5 percent. A sample of individual loan transactions from a goldsmith bank allows us to examine how interest rate restrictions affected loan allocation. Average loan size and minimum loan size increased...

usury is prohibited in islam and other divine religions. however, the financial system which is common in today's world, especially in west, is founded on the basis of usury. in effect, it is the features present in usurious loans that seduce uncommitted capitalists into preferring this kind of contract to other methods of investment. as a matter of fact, such loans need not be supervised ...