Law and Magic Blog

Magic and Money In "Harry Potter"

Eric J. Gouvin, Western New England Law School, has published The Magic of Money and Banking, in Harry Potter and the Law (Jeffrey E. Thomas and Franklin D. Snyder eds.; Carolina Academic Press, 2010). Here is the abstract.

 

Creating money out of thin air is one of the few truly magical things Muggles are capable of, which makes it odd that J.K. Rowling did not include a more thoughtful discussion of banking in her Harry Potter books. Indeed, the banking system in the wizarding world seems quite rudimentary -- more like the safe deposit business than true banking. Nevertheless, Muggle bankers and magical bankers face similar problems relating to security and money laundering and they have developed regulatory strategies to deal with those problems.

The full text is not available from SSRN. Support the economy, magicians, and Muggles; buy the book!

Bunnies Rampant, On a Wall Street Flag

A lot of magic references in this 2001 paper on free trade from Peter Dorman. An excerpt.

Brown-Deardoff-Stern’s buoyant predictions for free trade are like the rabbit pulled out of a hat: the trick works only because the rabbit was put into the hat to begin with. What follows is a visit backstage to see how the trick is put together step by step.

General Electric's Accounting Magic

"It may seem like accounting magic, but it's completely legit," says CNN about GE's US tax bill of $0.00, and answers its magic-themed (and tax-themed) question, "How'd it pull off that trick?" this way. The company, listed in the iconic Fortune 500, managed this feat by making nearly $11 billions worth of profits overseas and deducting its U.S. losses of more than $400 million. And taxes on those eleven billions in profit? Well, they'll come due--eventually.

Babson College's Laurence Moss Dies

Laurence S. Moss, Professor of Law and Economics at Babson College, has died. He was 64. Dr. Moss was known for his use of magic to teach the principles of economics. Prior to his tenure at Babson, he taught at the University of Virginia and at the Tufts University Fletcher School of Law and Diplomacy. He held a PhD from Columbia and a JD from Suffolk Law School. He was admitted to the practice of law in Massachusetts in 1986. Babson College held a memorial service for him on May 7. Here is a link to his obituary and guest book in the Boston Globe.