ABSTRACT
This article explores the development of Law and Macroeconomics (LawMacro) and its ideological divergence from the Law and Economics (LawEcon) tradition. It emphasizes that LawMacro’s innovation lies in its adoption of Keynesian economics rather than merely in the incorporation of macroeconomic perspectives. The rise of LawMacro is attributed not just to the aftermath of the 2008 financial crisis but also to a shift in the perspectives of a new generation of legal scholars, who question the microeconomic focus and efficiency-centric approach that prevails in the tradition of LawEcon. Challenging the dominant narrative, the article proposes that an engagement with macroeconomic issues does not necessitate a Keynesian approach and suggests that there is untapped potential in revisiting the LawEcon tradition, particularly in the realm of monetary policy. Ultimately, the article positions the Keynesian LawMacro that has been proposed as a distinct paradigm that both confronts and seeks to move beyond the tenets of LawEcon but calls for LawEcon scholars to engage with the debates sparked by LawMacro in a manner that preserves the foundational elements of LawEcon.
Meyerhof Salama, Bruno, Macroeconomics and the Tradition of Law and Economics (April 17, 2024), 27 University of Pennsylvania Journal of Business Law, 2024 (Forthcoming).
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