The Sickest Patients Need the Most Medicine: A Response to Margalioth and Webber on Law and Macroeconomics: Legal Remedies to Recessions

Abstract

Yoram Margalioth and David Webber offer fascinating, yet very different, takes on Law and Macroeconomics: Legal Remedies to Recessions. Instead of responding to their insightful comments seriatim, I will highlight a common theme that I believe underlies both of their respective comments.

My book argues for expansionary legal policy—law and regulation should seek to stimulate spending in the economy when there is excess unemployment. Webber acknowledges the analytical case for expansionary legal policy, but express concern about the practicalities. As Webber asks:

How should legal actors know when to begin applying macroeconomic considerations and how will they know what to do? Should the Federal Reserve file legal briefs asking for just such consideration and suggesting courses of action? How else will judges know what the right course of action is, even if they are willing and able to consider macroeconomic effects?