This article examines the different approaches to the relation between law, state and economy in the works of Hans Kelsen, Carl Schmitt and Evgeny Pashukanis. It begins with Kelsen’s depiction of law as a dynamic and ‘self-regulating’ system of norms, founded on his rejection of ‘dualist’ separations of state and law, before turning to Schmitt and Pashukanis’s respective critiques. For all their differences, both agree Kelsen ignores the historical basis of the law – for Schmitt, the sovereign power of ‘the political’, for Pashukanis, the social relations of commodity exchange. The article responds to these criticisms in a most un-Kelsenian manner, drawing upon historical sociological literature on early modern state formation to cast doubt on both Schmitt and Pashukanis’s historical accounts. It argues that the forms of political power and commodity exchange upon which Schmitt and Pashukanis’s theories rely were historically specific possibilities opened up by the same process of generalisation and depersonalisation of power relations that allowed for an autonomous ‘public’ system of legal norms. Thus, rather than the fixed causal ground for the development of modern law, ‘the political’ and exchange between equals exist in a relation of ‘difference-in-unity’ with the law. The article concludes that Kelsen’s notion of the Grundnorm is best explained as an attempt to capture the new possibilities and responsibilities opened up a normative system whose ultimate justification now lies only within itself.
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