IslamicFinance.de

The 55-year-old American economist Nouriel Roubini is considered one of the leading economic thinkers of his generation. For 2014, the good news according to him is that there is an uneven but meaningful recovery under way pretty much everywhere. The bad news is that asset inflation and “frothiness” could create the conditions for another bust. Quantitative easing leads to a risk of financial instability, and greed in financial markets can still cause bubbles and crashes, he warned. But when he turns to the Middle East economies, and to the growing sector of Islamic finance, his tone brightens noticeably. The Islamic system is less volatile and potentially more stable than conventional financial systems. The advanced economies can learn from the Islamic system in this respect, he said.