The rise and fall of ordoliberalism

Abstract

  Ordoliberalism has been accused of being the ideational blueprint for Germany’s fiscal stance during the Eurozone-crisis. While the literature that debates the influence of ordoliberalism on crisis politics is growing, there is a lack of studies tracing the ordoliberal influence within Germany. This study shows that ordoliberalism had very limited influence on the creation of German institutions and its economic knowledge regime. Where ordoliberalism can be found is in the bureaucracy. This influence will come to an end with the last ordoliberals retiring. The article reconstructs how the reorientation of German economics towards the global economics profession crowded out ordoliberalism. Ordoliberalism, publishing mostly in German and not being able to formalize its theory, could not keep up with modern German economics. This will also dry up the supply of ordoliberal staff for the bureaucracy. The article shows also that ordoliberalism lives on as part of the German conservative political tradition.