
Contents
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1. Introduction 1. Introduction
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2. The Role of the State 2. The Role of the State
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3. Eucken and His Ambivalent Relation with Full Employment Policies 3. Eucken and His Ambivalent Relation with Full Employment Policies
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4. Primary (‘Normal’) versus Secondary (‘Pathological’) Depressions 4. Primary (‘Normal’) versus Secondary (‘Pathological’) Depressions
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5. Conclusion 5. Conclusion
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Bibliography Bibliography
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29 Economic Crisis Policy
Get accessHarald Hagemann is Professor Emeritus of Economic Theory at the University of Hohenheim, Stuttgart, Germany and a Life Member of Clare Hall, University of Cambridge. In 1999/2000 he was Theodor Heuss Professor at the New School for Social Research in New York. He was awarded his PhD in 1977 from the University of Kiel and was Professor at the Free University of Berlin 1980–1981 and at the University of Bremen 1982–1988. His main research covers growth and structural change, technological change and employment, business cycle theory and the emigration of German-speaking economists in the Nazi period. He is Honorary Past President of the European Society for the History of Economic Thought ESHET.
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Published:20 October 2022
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Abstract
The basic principles of Ordoliberalism are rooted in economic crises, particularly the mass unemployment of the Great Depression with its devastating economic and political consequences. Governmental interventions should focus on keeping the competitive order functioning, which may imply the breaking-up of economic power groups if needed, rather than the steering of the economic process. In contrast to Keynesian macroeconomics, the government is not charged with the responsibility of achieving a high level of employment. Only in exceptional cases, such as secondary (Röpke) or pathological depressions with their mass unemployment, are full employment policies considered necessary but still viewed ambivalently due to their inherent tendency to central planning. Ordoliberals early on favoured rule-based policies as they were characterising the German position in the controversial discussions of the Maastricht Treaty, the Stability and Growth Pact and during the Euro crisis.
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