IPS Implications of IIE(θ(ε))-Model in Specifics of the Socio-economic Theory

Abstract

The specific problem examined here is the theory underlying abolition of interest rate and its ethical, multiplier, stabilization, and wellbeing effects of spending in respect of the real economy. Contrasting theories between the Tawhidi methodological worldview and non-Tawhidi methodological worldview are studied. Several new implications of long-term and contingency-based short-term rates of interest are studied in the Tawhidi methodology of intertemporal and contingency-based valuation of assets and cash flows. The contrasting models of the two kinds of valuation are formalized. The Tawhidi-derived implications of interest and valuation of real assets and cash flows introduced in this chapter will prove to be novel to Muslim scholars working in the so-called topic of Islamic economics. There is much to learn from the resulting Tawhidi innovative socio-scientific thought.

Appendix 2.3: The Evolutionary Learning Dynamics Derived from [θ(ε)∈(Ω,s)]

Figure A.2.3.1 provides a conformal correspondence between the shura-tasbih or equivalently evolutionary learning dynamics of the Tawhidi IIE(θ(ε))-model, as derived from the primal Tawhidi ontology of (Ω,S). Although the explanation given here is universally applicable to “everything” that occur as events in the consciousness continuum, for the benefit of Chap. 2.1 we focus on the shura-tasbih dynamics of complementary choices between the following topological sets: The spending set is denoted by {Sp}. Inversion of the rate of interest “i”; and concurrently the expansion of the real economy in complementarity with the financial economy and shadow economy of potential technological change resulting in the rate of return together is denoted by {r/i}. The ethical set is denoted by {e}. Each of these in their given limited diversity, but expandable to vastly many more, is induced by the primordial Tawhidi ontology denoted by (Ω,S). Thereby, the consciousness-induced knowledge-flows working out throughout the phenomenological entirety of the Tawhidi IIE(θ(ε))-model is denoted by {θ(ε)}. Its parametrized values are determined by intra-systemic Tawhidi IIE(θ(ε))-model evolving into inter-systemic monotonicity of the vector values for, z(θ(ε)) = (x,e,t)[θ(ε)]. The rest of the explanations of expression (2.3.5) and Fig. (2.3.2) abide. The shura-tasbih learning dynamics linking intra-systems with evolutionary inter-systems in conscious continuum of time-path of z(θ(ε))-values is formed by Tawhidi IIE(θ(ε))-model as follows: The Tawhidi epistemic domain is formed by a plethora of random probabilistic generalized evolutionary equilibrium points in fields around the time-path of such equilibrium points, as shown. The plethora of continuous time-paths of the generalized evolutionary learning equilibriums are caused by the continuous simulation affecting the Bayesian-type random fields of coefficients in the wellbeing function and circular-causation relations shown in expression (2.3.5 and 2.3.6).

Fig. A.2.3.1

{Sp,r/i,e,t}[θ(ε)∈(Ω,S)] in the light of the qur’anic verse (Qur’an 3:134)

When the random fields of the evolutionary learning equilibrium are indefinitely many, then a probability limit of z(θ(ε))-values is sought in their extended field caused by the induction of “θ(ε).” These parametrized learning values signifying approximation of the wellbeing functions in their inter-systemic time-paths acquire monotonic increasing values. The Tawhidi IIE(θ(ε))-properties in evolutionary learning processes are explained by, ∪^Interaction∩^Integration{Sp,r/i,e}[θ(ε)∈(Ω,S)], with (d/dθ(ε))[W(z(θ(ε) = (Sp,r/i,e)[θ(ε)] > 0 monotonically across conscious continuum in (knowledge (θ(ε)), space (Sp,r/i,e), time)-dimensions.