Financial System of Buddhist Economics

Abstract

This paper argues that capitalism itself produces financial crises. Solution to this crisis is to seek for an alternative financial system. This paper aims to extend Buddhist economics of Aphichai Puntasen by developing a Buddhist economic framework of financial system. The paper argues that in constructing this new Buddhist financial system, financial institutions including banks, the central bank, the stock exchange market requires to be under the Buddhist principle of paññāism and nonviolence. These principles enhance the financial system to operate with selfless and serve for the betterment of the society.