Risk sharing and the systemic fragilities of debt-economy

Intellectual Discourse 26:291-308 (2018)
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Abstract

This study explains risk transfer, associated with debt-basedfinancing, as the main cause of financial crises in the world. It presents the casefor a financial architecture based on risk sharing that, in turn, is likely to makethe financial system less fragile and more stable. This study also highlights thesignificance of Islamic finance in this regard.

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