Al-Maqrizi and Inflation: 14th-Century Thought Still Relevant in Indonesia

The economic theories of Al-Maqrizi, a 14th-century Islamic scholar, offer enduring insights into managing inflation, a persistent challenge for modern economies like Indonesia. Born in Cairo in 1364, Al-Maqrizi, whose full name was Taqiyuddin Ahmad bin Ali bin Abdul Qadir Al-Maqrizi, lived through the Mamluk dynasty and witnessed firsthand the economic crises that plagued Egypt, including rising prices, poverty, and public suffering.

His seminal work, "Ighatsah Al-Ummah bi Kasyf Al-Ghummah" (Relief of the Ummah in Revealing Distress), delves into the causes and consequences of economic crises. Al-Maqrizi distinguished between two primary drivers of inflation: "natural inflation," resulting from factors beyond human control such as natural disasters, droughts, crop failures, epidemics, and wars; and "human error inflation," caused by societal issues like corruption, abuse of power, excessive taxation, and mismanagement of currency. He argued that the latter is more dangerous because it is preventable through good governance and sound economic policies.

Al-Maqrizi's emphasis on currency stability and the government's responsibility in ensuring public welfare continues to resonate. His detailed analysis of the economic turmoil of his time provides a historical lens through which contemporary economic issues, particularly inflation and the need for robust governance, can be better understood and addressed in Indonesia and beyond.