Over the past century explicit discussion of theology has all but disappeared from economic discourse, while economics has been largely ignored by theologians. This paper argues that this separation is neither desirable nor possible, and calls for a theological economics. The argument is in two parts-a primary argument for the necessity and primacy of theology coming from the nature of orthodox Christian theology, and a secondary argument based on points of contact between economics and theology. Acceptance of the argument does not lead to a separatist "Christian" economics, but rather to discussion of theology implicit in contemporary economics and better relations between the two disciplines. Some existing work along these lines is briefly surveyed.

The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith's writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton's theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith's general providential account of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis.

The influence of labour market regulation on employment is intensely debated across the OECD. In Australia, the focus is currently on the employment impact of recent changes to unfair dismissal provisions. There is surprisingly little research on the magnitude and structure of dismissal costs, and this paper presents new data from a major survey of small‐ and medium‐sized Australian enterprises. Dismissal costs are compared for different types of separations, including redundancy, uncontested fires and complex fires. Using the data and a simple labour demand model, we estimate the direct employment impact of Australia's changes to unfair dismissal protection. The impact is found to be modest.