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The German Anti-Keynes? On Walter Eucken’S Macroeconomics

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  • Feld, Lars P.
  • Köhler, Ekkehard A.
  • Nientiedt, Daniel

Abstract

The work of Walter Eucken (1891–1950), founder of German ordoliberalism, is often described as being in direct opposition to that of John Maynard Keynes. Our paper challenges this claim by making two main arguments. First, we show that Eucken supported a proto-Keynesian stimulus program at the height of the Great Depression, the so-called Lautenbach plan of 1931. Second, we analyze his critique of full employment policy, which reveals that Eucken’s approach to solving macroeconomic problems is fundamentally different from, if not necessarily contrary to, that of Keynes.

Suggested Citation

  • Feld, Lars P. & Köhler, Ekkehard A. & Nientiedt, Daniel, 2021. "The German Anti-Keynes? On Walter Eucken’S Macroeconomics," Journal of the History of Economic Thought, Cambridge University Press, vol. 43(4), pages 548-563, December.
    • Handle: RePEc:cup:jhisec:v:43:y:2021:i:4:p:548-563_4
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    References listed on IDEAS

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    1. Keynes, John Maynard, 1919. "The Economic Consequences of the Peace," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number keynes1919.
    2. Blaug,Mark, 1997. "Economic Theory in Retrospect," Cambridge Books, Cambridge University Press, number 9780521577014, October.
    3. Dal Pont Legrand, Muriel & Hagemann, Harald, 2017. "Business Cycles, Growth, And Economic Policy: Schumpeter And The Great Depression," Journal of the History of Economic Thought, Cambridge University Press, vol. 39(1), pages 19-33, March.
    4. Eichengreen, Barry & Ritschl, Albrecht, 2008. "Understanding West German economic growth in the 1950s," SFB 649 Discussion Papers 2008-068, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    5. Blyth, Mark, 2013. "Austerity: The History of a Dangerous Idea," OUP Catalogue, Oxford University Press, number 9780199828302.
    6. Jörg Bibow, 2018. "How Germany’s anti-Keynesianism has brought Europe to its knees," International Review of Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 569-588, September.
    7. Barry Eichengreen & Albrecht Ritschl, 2009. "Understanding West German economic growth in the 1950s," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 3(3), pages 191-219, October.
    8. Backhouse, Roger E. & Bateman, Bradley W. & Nishizawa, Tamotsu & Plehwe, Dieter (ed.), 2017. "Liberalism and the Welfare State: Economists and Arguments for the Welfare State," OUP Catalogue, Oxford University Press, number 9780190676681.
    9. Hansjorg Klausinger, 1999. "German Anticipations of the Keynesian Revolution?: The Case of Lautenbach, Neisser and Ropke," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 6(3), pages 378-403.
    10. Eichengreen, Barry & Hatton, Tim, 1988. "Interwar Unemployment in International Perspective," Institute for Research on Labor and Employment, Working Paper Series qt7bw188gk, Institute of Industrial Relations, UC Berkeley.
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    Cited by:

    1. Feld, Lars P. & Köhler, Ekkehard A. & Nientiedt, Daniel, 2021. "Ordoliberalism and the social market economy," Freiburg Discussion Papers on Constitutional Economics 21/5, Walter Eucken Institut e.V..
    2. Francesco Denozza, 2019. "Spettri del mitico ordo: diritto e mercato nel neoliberalismo (Ghosts of mytical ordo: Law and markets in neoliberalism)," Moneta e Credito, Economia civile, vol. 72(288), pages 327-348.

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    More about this item

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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