1932

Abstract

This article surveys recent work on the role of law in determining economic aggregates such as gross domestic product, unemployment, inflation, and productivity growth. We provide a brief overview of macroeconomics and discuss how legal interventions and institutional arrangements such as monetary, fiscal policy, financial regulation, and other legal changes can stabilize business cycles. Finally, we discuss the role of the law in promoting economic growth.

Loading

Article metrics loading...

/content/journals/10.1146/annurev-lawsocsci-032719-110419
2019-10-13
2024-04-19
Loading full text...

Full text loading...

/deliver/fulltext/lawsocsci/15/1/annurev-lawsocsci-032719-110419.html?itemId=/content/journals/10.1146/annurev-lawsocsci-032719-110419&mimeType=html&fmt=ahah

Literature Cited

  1. Acemoglu D. 2009. Introduction to Modern Economic Growth Princeton, NJ: Princeton Univ. Press
  2. A.L.A. Schechter Poultry Corp. et al. v. United States, 295 U.S. 495 1935.
  3. Barro J. 2012. Romney is right: Abolish HUD. Forbes April 16. https://www.forbes.com/sites/joshbarro/2012/04/16/romney-is-right-abolish-hud/
    [Google Scholar]
  4. Blanchard O. 2016. The US Phillips Curve: Back to the 60s? Policy Brief No. PB16–1, Peterson Inst. Int. Econ Washington, DC: https://piie.com/publications/pb/pb16-1.pdf
  5. Bubb R, Krishnamurthy P. 2015. Regulating against bubbles: how mortgage regulation can keep Main Street and Wall Street safe—from themselves. Univ. Pa. Law Rev. 163:61539–630
    [Google Scholar]
  6. Coffee JC Jr 2011. Systemic risk after Dodd-Frank: contingent capital and the need for regulatory strategies beyond oversight. Columbia Law Rev 111:4795–847
    [Google Scholar]
  7. Conti-Brown P. 2016. The Power and Independence of the Federal Reserve Princeton, NJ: Princeton Univ. Press
  8. Cooter RD, Edlin A. 2011. Law and growth economics: a framework for research. Work. Pap. Ser., Berkeley Progr. Law Econ., Univ. Calif Berkeley, CA: https://escholarship.org/uc/item/50t4d0kt
  9. Davis DR, Dingel JI. 2019. A spatial knowledge economy. Am. Econ. Rev. 109:1153–70
    [Google Scholar]
  10. Eggertsson GB. 2008. Great expectations and the end of the Depression. Am. Econ. Rev. 94:41476–516
    [Google Scholar]
  11. Eggertsson GB. 2012. Was the New Deal contractionary?. Am. Econ. Rev. 102:1524–55
    [Google Scholar]
  12. Fed. Open Market Comm 2018. Statement on longer-run goals and monetary policy strategy Statement, Fed. Open Market Comm Washington, DC: https://www.federalreserve.gov/monetarypolicy/files/FOMC_LongerRunGoals.pdf
  13. Financ. Crisis Inq. Comm 2009. Closed session interview of Ben Bernanke, Chairman of the Federal Reserve Interview, Financ. Crisis Inq. Comm Washington, DC: Nov. 17. http://fcic-static.law.stanford.edu/cdn_media/fcic-docs/FCIC%20Interview%20with%20Ben%20Bernanke,%20Federal%20Reserve.pdf
  14. Gorton GB. 2012. Misunderstanding Financial Crises: Why We Don't See Them Coming Oxford, UK: Oxford Univ. Press
  15. Hayashi A, Murphy DP. 2017. Savings policy and the paradox of thrift. Yale J. Regul. 34:3743–90
    [Google Scholar]
  16. Hines JR, Logue KD. 2015. Delegating tax. Mich. Law Rev. 144:2235–74
    [Google Scholar]
  17. Home Building & Loan Assoc. v. Blaisdell 290 U.S. 398 1934.
  18. Ip G. 2016. The case for raising the Fed's inflation target. Wall Street Journal Aug. 19. https://blogs.wsj.com/economics/2016/08/19/the-case-for-raising-the-feds-inflation-target/
    [Google Scholar]
  19. Judge K. 2017. Information gaps and shadow banking. Va. Law Rev. 103:3411–82
    [Google Scholar]
  20. Kamin D. 2014. In good times and bad: designing legislation that responds to fiscal uncertainty Work. Pap. 7, Hutchins Cent. Fisc. Monet. Policy, Brookings Inst Washington, DC: https://www.brookings.edu/research/in-good-times-and-bad-designing-legislation-that-responds-to-fiscal-uncertainty/
  21. Kiley MT, Roberts JM. 2017. Monetary policy in a low interest rate world. Brookings Pap. Econ. Act. 2017:Spring315–96
    [Google Scholar]
  22. Klubes BB. 1990. The First Federal Congress and the First National Bank: a case study in constitutional interpretation. J. Early Repub. 10:119–41
    [Google Scholar]
  23. Korinek A, Stiglitz JE. 2017. Artificial intelligence and its implications for income distribution and unemployment Work. Pap. 24174, Natl. Bur. Econ. Res Cambridge, MA: https://www.nber.org/papers/w24174
  24. Kysar DA. 2001. Sustainability, distribution, and the macroeconomic analysis of law. Boston Coll. Law Rev. 43:1–71
    [Google Scholar]
  25. La Porta R, Lopez-de-Silanes F, Shleifer A, Vishny RW 1998. Law and finance. J. Political Econ. 106:61113–55
    [Google Scholar]
  26. Levitin AJ. 2011. In defense of bailouts. Georgetown Law J 99:435–514
    [Google Scholar]
  27. Liscow Z. 2014. Reducing inequality on the cheap: when legal rule design should incorporate equity as well as efficiency. Yale Law J 123:72478–511
    [Google Scholar]
  28. Listokin Y. 2009. Stabilizing the economy through the income tax code Fac. Scholarsh. Ser. 559, Yale Law Sch., Yale Univ New Haven, CT: https://digitalcommons.law.yale.edu/fss_papers/559
  29. Listokin Y. 2019. Law and Macroeconomics: Legal Remedies to Recessions Cambridge, MA: Harvard Univ. Press
  30. Macey JR, Holdcroft JP Jr 2011. Failure is an option: an ersatz-antitrust approach to financial regulation. Yale Law J 120:61368–418
    [Google Scholar]
  31. McConnell JM. 2008. Remarks and Q&A by the Director of National Intelligence Mr. Mike McConnell Remarks presented at the US Geospatial Intelligence Foundation (USGIF) GEOINT 2008 Symposium Nashville, TN: https://www.dni.gov/files/documents/Newsroom/Speeches%20and%20Interviews/20081030_speech.pdf
  32. Mian A, Sufi A. 2018. Finance and business cycles: the credit-driven household demand channel. J. Econ. Perspect. 32:331–58
    [Google Scholar]
  33. Murphy D. 2016. Welfare consequences of asymmetric growth. J. Econ. Behav. Organ. 126:A1–17
    [Google Scholar]
  34. Murphy D. 2017a. A brief introduction to macroeconomics Darden Case No UVA-GEM-0125, Darden Sch. Bus., Univ. Va Charlottesville, VA:
  35. Murphy D. 2017b. Aggregate demand and aggregate supply Darden Case No UVA-GEM-0127, Darden Sch. Bus., Univ. Va Charlottesville, VA:
  36. Posner EA. 2016. What legal authority does the Fed need during a financial crisis Pap. 741, Coase-Sandor Inst Law Econ. Res, Univ. Chic Chicago, IL: http://dx.doi.org/10.2139/ssrn.2723524
    [Crossref]
  37. Rajan RG, Zingales L. 1998. Financial dependence and growth. Am. Econ. Rev. 88:3559–86
    [Google Scholar]
  38. Ramirez SA. 2003. The law and microeconomics of the New Deal at 70. Md. Law Rev. 62:515–72
    [Google Scholar]
  39. Ricks M. 2016. The Money Problem: Rethinking Financial Regulation Chicago: Univ. Chic. Press
  40. Rockoff H. 2002. Price controls. The Concise Encyclopedia of Economics Carmel, IN: Lib. Fund http://www.econlib.org/library/Enc1/PriceControls.html
    [Google Scholar]
  41. Romano R. 2012. Regulating in the dark. Regulatory Breakdown: The Crisis of Confidence in U.S. Regulation C Coglianese 86–117 Philadelphia: Univ. Pa. Press
    [Google Scholar]
  42. Schwarcz SL. 2011. Regulating shadow banking: inaugural address for the inaugural Symposium of the Review of Banking & Financial Law. Rev. Bank. Financ. Law. 31:619–42
    [Google Scholar]
  43. Shear MD. 2010. Obama lesson: “Shovel ready” not so ready. New York Times Oct. 15. https://thecaucus.blogs.nytimes.com/2010/10/15/obama-lesson-shovel-ready-not-so-ready/
    [Google Scholar]
  44. Taylor J. 2000. Reassessing discretionary fiscal policy. J. Econ. Perspect. 14:321–36
    [Google Scholar]
  45. Tucker P. 2018. Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State Princeton, NJ: Princeton Univ. Press
/content/journals/10.1146/annurev-lawsocsci-032719-110419
Loading
  • Article Type: Review Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error