The Rise and Fall of the German Miracle
Critical Review, Vol. 13, pp. 337-358, 2001
22 Pages Posted: 14 Jan 2008 Last revised: 29 Oct 2009
The fast recovery of Germany's economy after World War II the so-called German miracle can be explained by the market-oriented economic policies pursued in the 1950s, based upon the ideas of Ordoliberalism. The slowing growth rates and increasing economic difficulties since the 1970s seem to have resulted from the extension of interventionist and redistributionist policies beyond those sanctioned by Ordoliberalism. The roots of the German economic decline are political: already in the 1950s, a broad consensus existed about the need to integrate market-oriented economic policy with a highly redistributory welfare state in a social market economy.
JEL Classification: N14
Suggested Citation: Suggested Citation