By Obadiah Mailafia
Law’s empire covers all those rules, institutions and norms that define the legal order of a society. Economics, on the other hand, is the science of reconciling scarcity and wants to enhance the wealth of nations.
Richard Posner at Chicago Law School was a pioneer in the study of law as a social tool to promote economic efficiency. Economist and Nobel laureate Joseph Stiglitz has argued that the structural challenges facing the American economy, for example, have to do with the inefficient rule-making that underpins American capitalism. Daron Acemoglu and James Robinson, in their book, Why Nations Fail (Crown Publishing 2012), underline the system of rules governing institutions, markets and property rights as being key critical success factors for the prosperity of nations.
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The normative framework for macroeconomic policy management derives from both fiscal and monetary policy. Fiscal policy is about government revenue mobilisation, taxation, budgeting and public expenditure. Monetary policy, on the other hand, has to do with the work of the central bank in controlling monetary aggregates, moderating inflation and ensuring a sound monetary and payments system.
In an ideal world, the fiscal and monetary side must work in tandem to ensure financial balance, macroeconomic equilibrium and long-term prosperity. Economic policy efficiency is critical in sending the right signals by which market players and other economic actors can anchor their rational expectations for the future.
The Financial Act 2020 is a 26-page documented that was signed into law by President Muhammadu Buhari on January 13, 2020 and was gazetted on the following day of January 14, 2020. Several factors brought it into being. First, as of June last year, our economy entered into another recession; coming at the wake of the generalised and unprecedented lockdown occasioned by the novel coronavirus global pandemic.
Our second recession came when we were just coming out…
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