Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia

Research Article

Fundamental Frictions of Legal and Political Policy of National Economic in Contrast to the Capital and Result based Economic System in Modern Monetary Theory

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  • @INPROCEEDINGS{10.4108/eai.25-11-2021.2318840,
        author={Raendhi  Rahmadi and Ahmad Fajar Herlani and Sylvia  Fauzia},
        title={Fundamental Frictions of Legal and Political Policy of National Economic in Contrast to the Capital and Result based Economic System in Modern Monetary Theory},
        proceedings={Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICSST},
        year={2022},
        month={7},
        keywords={policy; fundamental friction; modern monetary theory},
        doi={10.4108/eai.25-11-2021.2318840}
    }
    
  • Raendhi Rahmadi
    Ahmad Fajar Herlani
    Sylvia Fauzia
    Year: 2022
    Fundamental Frictions of Legal and Political Policy of National Economic in Contrast to the Capital and Result based Economic System in Modern Monetary Theory
    ICSST
    EAI
    DOI: 10.4108/eai.25-11-2021.2318840
Raendhi Rahmadi1,*, Ahmad Fajar Herlani1, Sylvia Fauzia1
  • 1: Universitas Islam Syekh Yusuf, Indonesia
*Contact email: rrahmadi@unis.ac.id

Abstract

The Modern Monetary Theory (MMT) has been one of the most argued and discussed since it is being implemented by countries in the world with various degrees of success, which generally is claimed to be effective in strengthening the economy in various sectors and perspectives. The discussion addresses the problems of main factors causing MMT to collide with Indonesia’s economic system and the adjustment on the frictions so that it can be implemented effectively. This study involved secondary data and employed a normative and empirical legal approach with qualitative data analysis techniques to investigate policies that were contrasted to the MMT concept. The findings showed that the MMT concept was predicted to bring some fundamental frictions regarding financial policymaking in Indonesia. Therefore, the adjustment is suggested by reorienting the national economic-political goals to the concept of a new economic perspective, i.e. the concept of a Protective Economy that encourages independence.