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Limitations to the Interdependence of Systems

In: The Evolution of Economic Systems

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  • Gerhard Schwarz

Abstract

The theory of the Interdependence of political and economic systems is one of the most important ‘dogmas’ of ordoliberalism which considers the market economy as a willingly created — and by the visible hand of the state controlled — system (or order) and not as an automatic mechanism. Walter Eucken outlined this theory on several occasions,1 claiming that knowledge of it was ‘essential’ for understanding present-day problems in the fields of economics, law and politics.2 As a result, Eucken’s thesis has almost become an integral part of general knowledge — at any rate as far as the German-speaking area is concerned, and at least as regards mainstream economics. It constitutes an essential analytic instrument in understanding the susceptibility to reform of Eastern systems, in judging socialisation trends in the West and within the context of convergence considerations.

Suggested Citation

  • Gerhard Schwarz, 1990. "Limitations to the Interdependence of Systems," Palgrave Macmillan Books, in: Kurt Dopfer & Karl-F. Raible (ed.), The Evolution of Economic Systems, chapter 3, pages 32-42, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11153-4_3
    DOI: 10.1007/978-1-349-11153-4_3
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