This paper summarizes Hayekian Law and Economics.

This paper is the sequel to chapter 30 of the 1999 first edition of The Elgar Companion to Law and Economics (ed. J. Backhaus). A new section has been added entitled 'An application of Hayekian law and economics: the comparative analysis of alternative monetary and banking regimes'.

The various subdisciplines within the emerging ‘new institutionalism’ in economics all draw special attention to the legal-political constraints within which economic and political agents choose and therefore represent a return of economics to its appropriate legal foundations. By changing...