PROVING AL-MAQRIZI’S CONCEPT ON THE DETERMINANTS OF INFLATION: CROSS BORDER ANALYSIS

  • Nashr Akbar Tazkia Islamic University College
  • Abdul Wahid al Faizin

Abstract

This research discusses the determinants of inflation according to Al-Maqrizi, one of Ibnu Khaldun’s disciples. He argued that inflation is caused by natural factors and human error factors. Among those human error factors, government corruption and the excess supply of non-metal money. This study employs a critical review on the work of al-Maqrizi, ighatsatul ummah bi kasyfil ghummah, supported with a panel data regression on cross-country data related to the rate of inflation, the rate of corruption and the number of the natural disaster. The empirical data shows that the rate of inflation is positively related to the human error factors; corruption, tax, and money supply. The results indicated the relevancy of al-Maqirizi’s postulate to the modern days’ economy.  However, natural disasters are not proven as a significant factor for inflation in the country level. This paper contributes to the importance of the study on the classical Muslim Scholars thinking to understand current economic problems and the way to solve it.

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Published
2019-12-27
How to Cite
Akbar, N., & al Faizin, A. (2019). PROVING AL-MAQRIZI’S CONCEPT ON THE DETERMINANTS OF INFLATION: CROSS BORDER ANALYSIS. Journal of Islamic Monetary Economics and Finance, 5(4), 873-890. https://doi.org/10.21098/jimf.v5i4.1142
Section
Articles