FRIEDMAN'S MONETARY THEORY: A CRITICAL REVIEW BASED ON AL-MAQRIZI'S PERSPECTIVE

Abstract

This study aims to examine and critique Milton Friedman's economic theory, particularly regarding monetary policy, from the perspective of Islamic economic theory as proposed by al-Maqrizi. Milton Friedman, as a prominent figure in modern economic thought, is known for his monetary theory, which emphasizes the importance of government control over the money supply to achieve economic stability. However, this theory often faces criticism, especially from economists who find it overly narrow. In contrast, al-Maqrizi, a classical Islamic economist, highlights the significance of ethics, moral values, and justice in the economy. By employing a qualitative analysis approach and a comparative textual method between Friedman's theory and al-Maqrizi's works, this study reveals that al-Maqrizi's approach to economic theory is more comprehensive than Friedman's. It incorporates social, moral, and spiritual dimensions closely related to societal welfare. Furthermore, al-Maqrizi emphasizes the critical role of government in monitoring and controlling the economy to prevent practices detrimental to society, such as monopolies and hoarding. The findings of this study are expected to enrich the literature on Islamic economics and serve as a reference for policymakers in developing more equitable and sustainable economic models.