Islamic Economics

Islamic Economics

A Scheme of an Adjusted Rotating Credit Association in the Inflationary Situation

Document Type : Original Article

Author
Mani Mo'tameni
Abstract
Rotating credit association has been considered as a Riba-free financial instrument in the Islamic countries.  Recent studies show that in poor Islamic regions, people use rotating credit associations more often than banking services. This study, besides supplying a scientific introduction of these institutions, has tried to point out the role of inflation in their operation. Due to the high inflation in the Iranian economy, only one half of the association's members will benefit and the other half will lose. In this article, an adjusted rotary association credit which is appropriate for the inflationary situation would be introduced. This adjusted rotating credit association can decrease the intensity of profit inequality between the members.
 
Keywords
Rosca
Riba-Free Financial Instrument
Inflation
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