Mawlana Sayyid Abu’l A‘la Mawdudi (1903-1979) is credited with being the founder of Islamic Economics, and having developed the idea of an Islamic Economic System. This paper investigates and finds little support for this claim, especially in view of the difficulty in translating the Urdu words rendered as "economy" and "system". It examines Mawlana Mawdudi's political theology of the Islamic state, and suggests that his economic thought is better viewed as an inextricable component of his larger social and political vision. The paper concludes that these claims not only strain the evidence available, but they also distort Mawlana Mawdudi’s thoughts, and add little to his formidable stature as one of the greatest Muslim leaders of the twentieth century.