Farza Faremi Adirama
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TOWARD A RIBA-FREE MACROECONOMIC FRAMEWORK: RETHINKING INFLATION AND ECONOMIC BALANCE Farza Faremi Adirama
Al Burhan: Jurnal Kajian Ilmu dan Pengembangan Budaya Al-Qur'an Vol. 26 No. 1 (2026): Al Burhan: Kajian Ilmu dan Pengembangan Budaya Al-Qur’an
Publisher : LP2M Universitas PTIQ Jakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53828/fw1tdn35

Abstract

This paper examines the limitations of interest-based monetary policy in managing inflation and maintaining economic balance. While conventional macroeconomic frameworks rely heavily on interest rate adjustments as the primary stabilization tool, such approaches are often insufficient in addressing structural disruptions, supply-side constraints, and behavioural dynamics within the economy. Drawing on Islamic economic principles, this study proposes a riba-free macroeconomic framework that emphasizes real-sector anchoring, risk-sharing financial mechanisms, and strategic alignment among economic agents. By integrating these elements, the paper offers an alternative perspective in which economic stability is achieved through structural and institutional design rather than reliance on interest-based instruments. The findings suggest that a riba-free system provides not only a normative foundation but also a conceptually coherent approach to managing inflation and promoting sustainable economic balance.