The Role of Zakat in Automatic Equilibrium in the Islamic Economy Using the input-output Model

Abstract

      The study aimed to elucidate the role of Zakat in contributing to achieving automatic equilibrium in the economy quantitatively through the use of the input-output model. The study relied on a descriptive approach involving the analysis of quantitative data relevant to the discussion. The study addressed the effectiveness and efficiency of financial instruments of public policy and their role in contributing to achieving automatic equilibrium in both traditional and Islamic economies.

      The study concluded that Zakat has an impact on increasing total demand as measured quantitatively using the input-output model, which works to establish automatic equilibrium in the economy. The study recommended the inclusion of Zakat as a financial tool utilized by the state in its public policies to achieve its economic and social objectives, ensuring the attainment of economic equilibrium. Additionally, it suggested the possibility of employing quantitative methods and mathematical models to study the behavior of economic variables in the Islamic economy.