Member-only story

German Primacy and the Origins of Neoliberalism: Emerging Frontiers in the Transatlantic Relationship

Ethan Gray

·13.1k Followers· Follow

Published in Unwitting Architect: German Primacy And The Origins Of Neoliberalism (Emerging Frontiers In The Global Economy)

5 min read

231 View Claps

37 Respond

Save

Listen

The rise of neoliberalism as a dominant economic ideology in the late 20th and early 21st centuries has been a subject of significant scholarly debate. While some scholars have focused on the role of the United States in the development and dissemination of neoliberal ideas, others have emphasized the importance of ideas and institutions emanating from Germany. This article seeks to explore the complex relationship between German primacy and the origins of neoliberalism, arguing that German ideas and institutions played a crucial role in the development of this influential economic ideology.

German Economic Thought and the Ordoliberal School

The roots of German primacy in the development of neoliberalism can be traced back to the interwar period, when a group of German economists known as the Ordoliberals emerged as a leading force in the critique of Keynesian economics. The Ordoliberals, led by figures such as Walter Eucken and Ludwig Erhard, argued that the free market was the most efficient and equitable way to organize an economy. They believed that government intervention in the market should be limited to ensuring a stable monetary system and preventing the formation of monopolies.

Unwitting Architect: German Primacy and the Origins of Neoliberalism (Emerging Frontiers in the Global Economy)

by Stefano Calicchio

5 out of 5

Language	:	English
File size	:	582 KB
Text-to-Speech	:	Enabled
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	304 pages
Screen Reader	:	Supported

The Ordoliberal ideas gained traction in Germany after World War II, as the country sought to rebuild its economy. Ludwig Erhard, who became Minister of Economics in 1949, implemented a series of policies inspired by Ordoliberal principles. These policies, which included currency reform, the dismantling of price controls, and the encouragement of free trade, are widely credited with helping to restore Germany's economic prosperity.

The Mont Pelerin Society and International Dissemination

The Ordoliberal ideas were not confined to Germany. In 1947, Walter Eucken and a group of like-minded economists founded the Mont Pelerin Society, an international organization dedicated to promoting the principles of free market liberalism. The Mont Pelerin Society became a forum for the exchange of ideas between German Ordoliberals and other neoliberal thinkers from around the world.

Through the Mont Pelerin Society, German ideas about neoliberalism gained a wider international audience. Economists from the United States and other countries were influenced by the Ordoliberal critique of Keynesianism and their emphasis on the importance of the free market. This influence can be seen in the work of Milton Friedman and other economists who are considered to be the intellectual founders of neoliberalism.

German Institutions and the Promotion of Neoliberalism

In addition to the dissemination of German ideas through the Mont Pelerin Society, German institutions also played a crucial role in the promotion of neoliberalism. The German Bundesbank, the central bank of Germany, became a model for other central banks around the world. The Bundesbank's commitment to price stability and its independence from political influence was seen as a key factor in Germany's economic success.

The German government also played a role in promoting neoliberalism through its foreign aid programs. In the 1950s and 1960s, Germany provided significant financial assistance to developing countries. This aid was often tied to the adoption of neoliberal economic policies, such as the liberalization of trade and the privatization of state-owned enterprises.

The rise of neoliberalism as a dominant economic ideology in the late 20th and early 21st centuries was a complex process that involved the interaction of ideas and institutions from multiple countries. However, the role of German primacy in the development of neoliberalism should not be underestimated. German Ordoliberal ideas provided the intellectual foundation for neoliberalism, and German institutions, such as the Bundesbank and the German government, played a crucial role in its dissemination and implementation. The understanding of German primacy in the origins of neoliberalism is essential for a comprehensive analysis of the historical and intellectual roots of this influential economic ideology.

A detailed exploration of the intricate relationship between German primacy, Ordoliberal economic thought, and the global emergence of neoliberalism, tracing the influence of German ideas and institutions on the development and dissemination of this influential economic ideology.

Long Tail SEO Title

Exploring German Primacy and the Intellectual Origins of Neoliberalism: Tracing the Role of Ordoliberalism, the Mont Pelerin Society, and German Institutions in the Emergence of a Global Economic Ideology

Unwitting Architect: German Primacy and the Origins of Neoliberalism (Emerging Frontiers in the Global Economy)

by Stefano Calicchio

5 out of 5