The Law and Macroeconomics of the New Deal at 70
58 Pages Posted: 8 Aug 2010
Date Written: March 4, 2003
Law and economics as currently taught fails to account for the macroeconomic importance of law. As such, mainstream law and economics fails to provide appropriate policy prescriptions in any area of the law that touches upon macroeconomic performance. Thus, banking law, corporate governance, financial regulation, human and market development, and the institutional design of administrative agencies are all generally ignored or resisted based upon market efficiency analysis or discredited laissez-faire ideology. Optimal legal infrastructure is essential to macroeconomic performance and the society that best approaches issues of legal infrastructure will outperform laggards particularly those excessively beholden to laissez-faire norms of deregulation. The New deal pioneered all of this and the best elements of the New Deal are today instructive regarding the search for and the content of an optimal legal infrastructure.
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