Hülsmann: Financial Markets and the Production of Law

ABSTRACT:

Following the Italian jurist and legal philosopher Bruno Leoni, the economics of financial markets can be interpreted as a special case of the economics of law. Government interventions in money and finance tend to entail the same type of consequences as the production of statutory law. Just as statutory law tends to create short-term certainty at the expense of an ultimate destruction of the law, fiat-money-based finance tends to create short-term funding possibilities at the expense of an ultimate destruction of savings and productive investments.

 

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