IPS Implications of IIE(θ(ε))-Model in Specifics of the Socio-economic Theory

The specific problem examined here is the theory underlying abolition of interest rate and its ethical, multiplier, stabilization, and wellbeing effects of spending in respect of the real economy. Contrasting theories between the Tawhidi methodological worldview and non-Tawhidi methodological worldview are studied. Several new implications of long-term and contingency-based short-term rates of interest are studied in the Tawhidi methodology of intertemporal and contingency-based valuation of assets and cash flows. The contrasting models of the two kinds of valuation are formalized. The Tawhidi-derived implications of interest and valuation of real assets and cash flows introduced in this chapter will prove to be novel to Muslim scholars working in the so-called topic of Islamic economics. There is much to learn from the resulting Tawhidi innovative socio-scientific thought.