Apart from the two available solutions, the Indonesian president Jokowidodo some time ago urged all Indonesians to start saving to prepare for the global economic stagflation storm. This appeal is still being questioned by many parties, is it true that saving will be able to get past stagflation and how it works, as for another opinion that the solution to “saving” is actually an order to save money for the community.
Other economists even suggest investing to deal with the threat of stagflation. Laura Barros in her writing “Spending or saving? Female empowerment and financial decisions in a matrilineal society. Research conducted in the UK can be interpreted as an effort to anticipate the financial crisis. Suggestions for choosing spending or investing over saving are actually to get used to the formation of an investor’s mindset.
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If we choose to invest rather than save, then we will create opportunities to be free from unstable economic conditions. In the context of the state, investment will encourage the community to form a positive business capital climate and drive the domestic economy. With the shifting from a saving society to an investment society it will increase economic growth because of the even distribution of income.
At this point, the saving society policy, which begins with the saving movement, will be challenged by the investment society. The economic culture of the investing community is believed to be the right choice to break through the threatening storm of stagflation. The challenge for this solution is to question what investment is most suitable for each individual and country, besides the need for an attitude not to depend too much on other countries or individuals, because in the event of war and an outbreak of logistical supplies and imported goods. will experience congestion so that it will experience scarcity in the market which will eventually end up in high prices of goods and weaken purchasing power. The epidemic has destabilized the world economy, while war has exacerbated the situation, so that there is no other way but not to rely entirely on other individuals and countries. (Syarifah Huswatun Miswar)
Syarifah Huswatun Miswar received a Master of Law in International Relations from the School of International and Public Affairs, Jilin University, China. She is a research analyst with an emphasis on Environmental in International Relations issues.