Islamic economics has produced many figures who have contributed\ngreatly to the development of economic thought. One interesting figure\nto study is Al-Maqrizi. Unlike some other Islamic economic thinkers who\nfocused on trade or wealth distribution, Al-Maqrizi extensively\ndiscussed inflation, currency stability, and the government\u2019s role in\nmaintaining public welfare. His thoughts remain highly relevant because\ninflation continues to be one of the main challenges faced by various\ncountries, including Indonesia.<\/p>\n
Al-Maqrizi, whose full name was Taqiyuddin Ahmad bin Ali bin Abdul\nQadir Al-Maqrizi, was born in Cairo, Egypt, in 766 H (1364 AD) and died\nin 845 H (1442 AD). He was known as a historian, scholar, and Islamic\neconomic thinker who lived during the Mamluk Dynasty. Throughout his\nlife, Al-Maqrizi observed various social and economic events in Egypt.\nHe witnessed firsthand an economic crisis that caused rising prices,\npoverty, and public suffering. This experience drove him to conduct\nin-depth studies on the causes and solutions to various economic\nproblems. One of his famous works is Ighatsah Al-Ummah bi Kasyf\nAl-Ghummah, which discusses the economic crisis and inflation of his\ntime. In this work, Al-Maqrizi provided a systematic analysis of the\nfactors causing inflation and its impact on society.<\/p>\n
Al-Maqrizi\u2019s most famous contribution is his theory of inflation.\nAccording to Al-Maqrizi, inflation is a condition of continuously rising\nprices for goods and services, leading to a decline in people\u2019s\npurchasing power. He divided inflation into two types: Natural Inflation\nand Human Error Inflation. Natural inflation occurs due to factors\nbeyond human control, such as natural disasters, drought, crop failure,\ndisease outbreaks, and war. When the available supply of goods decreases\nwhile public demand remains high, prices will rise. According to\nAl-Maqrizi, this type of inflation is a natural condition that is\ndifficult to avoid and often impacts all levels of society. Human Error\nInflation, on the other hand, occurs due to human behaviour and\ninappropriate policies. Al-Maqrizi explained that corruption, abuse of\npower, excessive taxation, and poor currency management can cause\nunreasonable price increases. He argued that inflation caused by human\nerror is far more dangerous because it can actually be prevented through\ngood governance and appropriate economic policies.<\/p>\n
Al-Maqrizi also stressed the importance of maintaining currency\nstability in the economy. In his era, the government often debased the\ncirculating currency to gain short-term profits. This policy caused the\ncurrency\u2019s value to fall and triggered price increases. According to\nAl-Maqrizi, the government must maintain the quality and value of the\ncurrency so that the public continues to trust the prevailing economic\nsystem. Currency stability will create a healthier economic climate and\nsupport trade activities. Furthermore, Al-Maqrizi believed that the\ngovernment has a crucial role in maintaining economic stability. The\ngovernment must create fair policies, supervise the distribution of\nstaple goods, and eradicate corruption that can harm society. If the\ngovernment fails to carry out these responsibilities, various economic\nproblems such as inflation and social inequality will become\nincreasingly difficult to overcome.<\/p>\n
Al-Maqrizi\u2019s thoughts remain very relevant to Indonesia\u2019s current\neconomic conditions. One of the problems Indonesia frequently faces is\nthe rising price of staple foods such as rice, chillies, cooking oil,\nand other food commodities. In some cases, price increases occur due to\nnatural factors like extreme weather, floods, or crop failures that\nreduce the supply of goods in the market. This condition aligns with the\nconcept of natural inflation described by Al-Maqrizi. Additionally,\nAl-Maqrizi explained that human error can damage economic conditions. In\nthe Indonesian context, inefficient goods distribution, corrupt\npractices, hoarding of goods, and inappropriate policies can cause the\nprices of basic necessities to rise further. The Indonesian government\nhas undertaken various efforts to control inflation through market\noperations, social assistance, subsidies, and increasing food\nproduction. These efforts demonstrate that the government\u2019s role is very\nimportant in maintaining economic stability and public welfare, as\nexplained by Al-Maqrizi centuries ago.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/al-maqrizi-and-inflation-14th-century-thought-still-relevant-in-indonesia-1782471206", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }