Islamic Solutions for Behavioral Problems in Economy

Abstract

Since late 19th century social sciences have been stuck within the deterministic views of natural sciences. Getting further away from the real nature of human being, social sciences have been explaining the imaginary world of the scientists. In economics, homo economicus plays the leading role in the imaginary world of economists. However, recently this dream world of economists has been greatly distressed with the development of behavioral economics. Behavioral economics has opened the door for real world investigations not only for economics but also for other social science disciplines. So today is the right time to talk about the reality of religion and economics. In fact, for defending an idea, generally the righteousness of the time is more important than the righteousness of the idea itself.  This study is prepared in order to make emphasis on the complementary relationship between religion and science in broad terms but specifically between Islam and economics. With a historical point of view, this study bases the main idea on three hypotheses from three books. First book is Frank M. Turner’s European Intellectual History. Second hypothesis is depended on the Tomas Sedlacek’s Economics of Good and Evil. Last but not least book is the Fukuyama’s End of History and the Last Man. At the final part of the study, based on these three hypotheses, there will be suggested Islamic solutions for behavioral problems in economics.