Ordoliberalism, Pragmatism and the Eurozone Crisis: How the German Tradition Shaped Economic Policy in Europe
German policy during the Eurozone crisis supposedly follows an ordoliberal tradition. In this paper, we discuss to what extent this contention holds and to what extent Germany pragmatically responded to different crisis phenomena. A proper analysis of ordoliberal thinking reveals that the European Monetary Union can be justified on ordoliberal grounds as an economic constitution for Europe in which several pillars supposedly aim at ensuring sound money in the Eurozone. The policies the German government pushed during the Eurozone crisis have been informed by the ordoliberal tradition. In particular, this tradition may explain why the German government has been hesitant to support the call for Eurobonds and has only reluctantly established the European Stability Mechanism (ESM). However, the decisions on the ESM and the acceptance of unconventional monetary policy in Europe show that German economic policy largely responded pragmatically to the challenges offered by the crisis.
|Date of creation:||2015|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Feld Lars P., 2013.
"Zur Bedeutung des Manifests der Marktwirtschaft oder: Das Lambsdorff-Papier im 31. Jahr,"
Zeitschrift für Wirtschaftspolitik,
De Gruyter, vol. 62(3), pages 227-243, December.
- Feld, Lars P., 2013. "Zur Bedeutung des Manifests der Marktwirtschaft oder: Das Lambsdorff-Papier im 31. Jahr," Freiburg Discussion Papers on Constitutional Economics 13/9, Walter Eucken Institut e.V..
- Vanberg, Viktor J., 2014. "Ordnungspolitik, the Freiburg School and the reason of rules," Freiburg Discussion Papers on Constitutional Economics 14/01, Walter Eucken Institut e.V..
- Bernanke, Ben S. & Mihov, Ilian, 1997. "What does the Bundesbank target?," European Economic Review, Elsevier, vol. 41(6), pages 1025-1053, June.
- Ben S. Bernanke & Ilian Mihov, 1996. "What Does the Bundesbank Target?," NBER Working Papers 5764, National Bureau of Economic Research, Inc.
- Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR;CES;MSH, vol. 15(30), pages 7-46, April.
- Feld, Lars P., 2012. "Europa in der Welt von heute: Wilhelm Röpke und die Zukunft der Europäischen Währungsunion," Freiburg Discussion Papers on Constitutional Economics 12/2, Walter Eucken Institut e.V..
- Feld, Lars P., 2012. "Europa in der Welt von heute: Wilhelm Röpke und die Zukunft der Europäischen Währungsunion," HWWI Policy Papers 70, Hamburg Institute of International Economics (HWWI).
- Berger, Helge & Nitsch, Volker, 2008. "Zooming out: The trade effect of the euro in historical perspective," Journal of International Money and Finance, Elsevier, vol. 27(8), pages 1244-1260, December.
- Helge Berger & Volker Nitsch, 2005. "Zooming Out: The Trade Effect of the Euro in Historical Perspective," CESifo Working Paper Series 1435, CESifo Group Munich.
- Berger, Helge & Nitsch, Volker, 2005. "Zooming Out: The Trade Effect of the EURO in Historical Perspective," Discussion Papers 2005/5, Free University Berlin, School of Business & Economics.
- Alesina, Alberto & Summers, Lawrence H, 1993. "Central Bank Independence and Macroeconomic Performance: Some Comparative Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 151-162, May.
- Rudolf Richter, 2012. "German “Ordnungstheorie”. From the Perspective of the New Institutional Economics," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 132(4), pages 473-500.
- Werner Bonefeld, 2012. "Freedom and the Strong State: On German Ordoliberalism," New Political Economy, Taylor & Francis Journals, vol. 17(5), pages 633-656, November.
- Stephanie Blankenburg & Lawrence King & Sue Konzelmann & Frank Wilkinson, 2013. "Prospects for the eurozone," Cambridge Journal of Economics, Oxford University Press, vol. 37(3), pages 463-477.
- Lars Feld, 2005. "The European constitution project from the perspective of constitutional political economy," Public Choice, Springer, vol. 122(3), pages 417-448, March.
- Lars P. Feld, 2004. "The European Constitution Project from the Perspective of Constitutional Political Economy," Marburg Working Papers on Economics 200415, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
- Lars P. Feld, 2005. "The European Constitution Project from the Perspective of Constitutional Political Economy," CREMA Working Paper Series 2005-20, Center for Research in Economics, Management and the Arts (CREMA).
- Blyth, Mark, 2013. "Austerity: The History of a Dangerous Idea," OUP Catalogue, Oxford University Press, number 9780199828302.
- Werner Bonefeld, 2013. "On the Strong Liberal State: Beyond Berghahn and Young," New Political Economy, Taylor & Francis Journals, vol. 18(5), pages 779-783, October.
- Jorg Bibow, 2009. "On the origin and rise of central bank independence in West Germany," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 16(1), pages 155-190. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_5368. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.