Law and macroeconomics as mainstream

Abstract

Abstract:In spite of its name, economic analysis of law is mostly unconcerned with money and markets. In a recently published book, Law and Macroeconomics: Legal Remedies to Recessions, Yair Listokin challenges this doubtful convention. He advocates 'expansionary legal policies' to stimulate the economy when monetary policy reaches the zero lower bound and becomes ineffective. This proposal is presented as a straightforward application of mainstream economic views, not a heterodox deviation. My review considers how the book's main arguments depart from established views in economic analysis of law and discusses how its applications fare in light of the Keynesian perspective that the book purports to uphold.