Analysis of the economic depressions and booms from the perspective of Islamic economic system with Grounded Theory approach

The purpose of this paper is to investigate the business cycles quiddity in the Islamic economic system. Thus, by using the grounded theory method, it was concluded that if people accompany the divine governor and according to the thanksgiving indicator, the blessings increase. and also by turning their individual consumptions to social consumption, the public care principle prevents of the demand shortage occurrence and a consistent level of demand in the economy is maintained at all times. On the other hand, the payment of obligator rights of capital will increase producer profits and will prevent the bankruptcy of other firms and also will help to maintain employment and increase job opportunities. As a result, it can be said that in the Islamic economic system, with the Islamic state establishment, due to the implementation of divine laws in society and the reformation of consuming and investment behaviors, the business cycles do not create.