Antitrust Law, Competition, and the Macroeconomy

This article examines the links between antitrust law-one possible tool for dealing with economic ills-and macroeconomic structure. It analyzes the current policy and economic assumptions underlying the importance of antitrust enforcement in reaching a healthy, competitive economy and concludes that such enforcement does contribute to the increased effectiveness of macroeconomic tools.

Part I explores the current macroeconomic theories and their policy implications. Part II discusses the related concepts of market power and competition and concludes that dissipation of market power is preferable, but that the regulation of market power may yield significant social and economic benefits in the short run, when dissipation is impossible. Finally, Part III examines the role of antitrust policy in the macroeconomy. The article concludes that effective enforcement of antitrust law is consistent with and beneficial to a healthy, competitive economy, and should be preserved and expanded as a tool for combating economic stagnation.