Harmonizing Islamic Finance Principles with Microeconomics and Macroeconomics Theories: A Sacred Perspective

Abstract

This research article explores the integration of Islamic finance principles with microeconomic and macroeconomic theories, aiming to reconcile the divergence between sacred financial principles and conventional economic thought. It identifies mechanisms and strategies to bridge the gap between Islamic finance principles and prevailing economic theories, proposing a paradigm shift by incorporating ethics, morality, and religious viewpoints. The methodology employs an intentional qualitative approach, rooted in a comprehensive literature review that synthesizes sacred texts, economic theories, and research findings. Research implications highlight the need for scholars to explore the integration of ethical considerations into economic models, fostering inclusiveness and guiding policymakers in formulating more ethical policies. The study also identifies research gaps, emphasizing the necessity for quantitative studies on the ethical implications of Islamic finance, cross-cultural comparisons of ethical frameworks, and longitudinal research on the progression of ethical financial conduct. In conclusion, this research contributes to the ongoing conversation about the role of ethics, morality, and religious perspectives in shaping economic systems, advocating for a more egalitarian and ethically grounded global financial structure. The findings offer insights and recommendations for creating a financial system that prioritizes social responsibility, sustainability, and wealth redistribution on a global scale, enhancing human existence and societal welfare.