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Observations on the legal theory of finance

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  • Hodgson, Geoffrey M.

Abstract

This is a comment on ’Towards a legal theory of finance’ by Katharina Pistor. It notes that both law and money are complex and controversial phenomena. They have to be treated as historically specific institutions that arise in the context of fundamental uncertainty. The historical origins of both are briefly considered. It is argued that fundamental uncertainty in the Knight-Keynes sense has been marginalised in modern economics and this creates problems for the theory of money. The comment also expands on the notion of ’essential hybridity’ - which signals that money and law are a result of both private arrangements and state intervention.

Suggested Citation

  • Hodgson, Geoffrey M., 2013. "Observations on the legal theory of finance," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 331-337.
    • Handle: RePEc:eee:jcecon:v:41:y:2013:i:2:p:331-337
    DOI: 10.1016/j.jce.2013.03.004
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    References listed on IDEAS

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    Cited by:

    1. Yolanda Blasco Martel & María Guadalupe Noriega Caldera, 2019. "Regulación y emergencia de los sistemas bancarios: Las experiencias de Espana y Latinoamérica en perspectiva histórica, 1820-1870," Tiempo y Economía, Universidad de Bogotá Jorge Tadeo Lozano, vol. 6(1), pages 161-189, February.
    2. Pistor, Katharina, 2013. "A legal theory of finance," Journal of Comparative Economics, Elsevier, vol. 41(2), pages 315-330.

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    More about this item

    Keywords

    B40; G00; K10; N20; Law; Money; Finance; Uncertainty; Historical specificity; Essential hybridity;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • G00 - Financial Economics - - General - - - General
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative

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