Economics of Tawarruq - How its Mafasid overwhelm the Masalih
Tawarruq: A Methodological issue in Sharī`a-Compliant Finance
Mohammad Nejatullah Siddiqi
Abstract: "This paper examines the impact of tawarruq on the economy. It demonstrates through macroeconomic analysis that the harmful consequences of tawarruq are much greater than the benefits generally cited by its advocates. It concludes that a financial instrument whose mafasid (harms) are much greater than masalih (benefits) cannot be characterized as sharī`a - compliant".