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70 years after the German currency and economic reform: The monetary, economic and political order in Europe is disturbed

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  • Schnabl, Gunther

Abstract

The currency reform on 20 June 1948, together with a comprehensive liberalisation of prices and the implementation of monopoly control, formed the basis for the West German economic miracle. From then on, the market principles formulated by Walter Eucken und implemented by Ludwig Erhard became the economic backbone of the European integration process. 70 years later, little remains of the basic principles of the German social market economy. An increasingly expansive monetary policy of the European Central Bank undermines market principles, growth and social cohesion in Europe, thereby eroding political stability. To ensure Europe's economic, political and social stability, a return to a stable currency and a marketoriented order is needed.

Suggested Citation

  • Schnabl, Gunther, 2018. "70 years after the German currency and economic reform: The monetary, economic and political order in Europe is disturbed," Working Papers 156, University of Leipzig, Faculty of Economics and Management Science.
    • Handle: RePEc:zbw:leiwps:156
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    More about this item

    Keywords

    currency and economic reform; economic order; Ludwig Erhard; Walter Eucken; European integration; democracy; inequality; social market economy;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School

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