Macroeconomics and the Tradition of Law and Economics

This article examines the emergence of Law and Macroeconomics (LawMacro) and its departure from the Law and Economics (LawEcon) tradition. It challenges the prevailing view that LawMacro’s innovation lies in introducing macroeconomic perspectives into legal discourse—something that has long existed. Instead, the article argues that LawMacro’s distinctiveness stems from its embrace of Keynesian economics, marking a significant ideological shift from the classical liberal foundations of LawEcon. The article attributes this change to a growing trend among younger, revisionist scholars who increasingly question LawEcon’s emphasis on market-based solutions and efficiency. It further contends that addressing macroeconomic issues does not necessarily require a Keynesian framework, emphasizing instead the value of a monetary constitution alongside stable legal frameworks, market coordination, and decentralized solutions, all in keeping with the LawEcon tradition.