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Ordoliberal Lessons for Economic Stability: Different Kinds of Regulation, Not More Regulation
Author(s) -
Siems Mathias,
Schnyder Gerhard
Publication year - 2014
Publication title -
governance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.46
H-Index - 76
eISSN - 1468-0491
pISSN - 0952-1895
DOI - 10.1111/gove.12046
Subject(s) - intervention (counseling) , economics , state (computer science) , financial crisis , rhetorical question , economic stability , positive economics , position (finance) , core (optical fiber) , stability (learning theory) , focus (optics) , economic system , political science , public economics , macroeconomics , computer science , finance , psychology , physics , philosophy , linguistics , algorithm , psychiatry , telecommunications , machine learning , optics
Since the G lobal F inancial C risis of 2008 the term “ordoliberalism” has experienced a marked revival. This discussion tends to focus on the need for more state intervention. Yet this misrepresents the core ideas of ordoliberalism because its main concern is not with “how much” but with “what kind of” intervention is needed. Thus, this article seeks to clarify the ordoliberal position, in particular its key distinction between market conforming and nonconforming state intervention. Discussing the current financial crisis, it also evaluates the potential benefits and drawbacks of ordoliberalism. The article rebukes rhetorical shortcuts that equate every economic policy coming out of G ermany with ordoliberalism. It also suggests that while the ordoliberal conception does not necessarily provide a solution to the current problems in the short run, in the long run it may form the basis for a sounder conception of economic regulation than more libertarian views can offer.