Ordoliberal Lessons for Economic Stability: Different Kinds of Regulation, Not More Regulation

27 Pages Posted: 6 Oct 2013 Last revised: 5 Jun 2014

See all articles by Mathias Siems

Mathias Siems

European University Institute (EUI); Durham University; European Corporate Governance Institute (ECGI)

Gerhard Schnyder

Loughborough University London - Institute for International Management; University of Cambridge - Centre for Business Research; King's College London

Date Written: March 5, 2013

Abstract

Since the Global Financial Crisis that started in 2008, the term “ordoliberalism” has experienced a marked revival. Academics and politicians of all couleurs have recently referred to ordoliberalism as a possible way forward. Others have held ordoliberalism responsible for Germany’s intransigent stance in the Euro rescue. However, most references use ordoliberalism merely as a shorthand for “liberalism with the state” or anti-inflationary macro-economic policy. Few have attempted to get at the heart of the ordoliberal theory of market regulation. This paper seeks to clarify the ordoliberal position in order to revisit current references to this theory. We argue that the ordoliberal distinction between market conforming and non-conforming state intervention holds some lessons for current debates about economic regulation. In particular, we focus on the Financial Crisis from an ordoliberal perspective and assess its relevance in the current context and its implications for regulatory reform.

This paper complements our research available at: http://ssrn.com/abstract=2142529

Keywords: ordoliberalism, liberal theory, institutional economics, financial crisis, financial regulation, Eurozone crisis

JEL Classification: A12, B25, B52, E02, H12, N44, P51

Suggested Citation

Siems, Mathias and Schnyder, Gerhard, Ordoliberal Lessons for Economic Stability: Different Kinds of Regulation, Not More Regulation (March 5, 2013). Available at SSRN: https://ssrn.com/abstract=2336475 or http://dx.doi.org/10.2139/ssrn.2336475

Mathias Siems (Contact Author)

European University Institute (EUI) ( email )

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HOME PAGE: http://www.eui.eu/siems

Durham University ( email )

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European Corporate Governance Institute (ECGI) ( email )

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Gerhard Schnyder

Loughborough University London - Institute for International Management ( email )

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University of Cambridge - Centre for Business Research ( email )

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HOME PAGE: http://www.cbr.cam.ac.uk/people/research-associates/gerhard-schnyder/

King's College London ( email )

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HOME PAGE: http://www.kcl.ac.uk/schools/sspp/mgmt/people/academic/schnyder/

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