What Would A World Without Interest Look Like?

Any economists want to opine?

 

If there was no interest in any form whatsoever, then nobody would lend anyone money! Would you? On the other hand if you're talking about 'no riba' type of situations (Islamic banking), you just have to look at the Islamic banking system to get an idea.

 

Thanks,yes I was thinking along those lines but with a 'jewish' system.Followed by islamic a few years later.

 

Maybe watch this, because it is related to your question:

 

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Well as a buyer + seller of Real Estate, that market would be a lot smaller, less liquid. Not a prediction.

 

I am very happy to be an owner of Google, the owner of Youtube.

 

It would be an uninterested world.

 

Islamic banking is without intrest. Maybe we would behave then like IS jihadis if we would do this too?
Some arabic countries don't need intrest... they have plenty of oil.

 

Oil is precisely why they could afford having no interest. Now that won't last for long.

 

Islamic banking isn't lending money for free because you have lots of oil money. It's essentially charging fees that are the same as interest would be, or paying more for something than you otherwise would, or any of a number of other tricks used to have the same monetary effect as interest without actually being considered "interest" by the Islamic scholars who blessed the schemes. Not uncommon for religions to go through crazy roundabout ways to accomplish something that's vital in today's world but was OK to do without when you were a nomadic herder, an eruv is my favorite example.