Considerations on the Legacy of Ordoliberalism in European Monetary Policy

Titolo Rivista HISTORY OF ECONOMIC THOUGHT AND POLICY
Autori/Curatori Stefano Figuera, Guglielmo Forges Davanzati, Andrea Pacella
Anno di pubblicazione 2022 Fascicolo 2022/2 Lingua Inglese
Numero pagine 28 P. 95-122 Dimensione file 147 KB
DOI 10.3280/SPE2022-002004
Il DOI è il codice a barre della proprietà intellettuale: per saperne di più clicca qui

Qui sotto puoi vedere in anteprima la prima pagina di questo articolo.

Se questo articolo ti interessa, lo puoi acquistare (e scaricare in formato pdf) seguendo le facili indicazioni per acquistare il download credit. Acquista Download Credits per scaricare questo Articolo in formato PDF

Anteprima articolo

FrancoAngeli è membro della Publishers International Linking Association, Inc (PILA)associazione indipendente e non profit per facilitare (attraverso i servizi tecnologici implementati da CrossRef.org) l’accesso degli studiosi ai contenuti digitali nelle pubblicazioni professionali e scientifiche

The paper aims to analysis the ordoliberal legacy in European Monetary Policy between 1998 and 2020. What emerges is that although ordoliberal principles were incorporated into the guiding values of the European treaties, they did not play a key role in guiding either the monetary policy strategies fixed in 1998 and 2003 or the ECB interventions implemented between 2011 and 2020 in response to the Great Recession and the sovereign debt crisis. This is basically due to a) the ECB’s acceptance of the New Consensus Macroeconomics (NCM) that recognises the endogenous nature of money and its partial non-neutrality, b) the ECB’s constant tendency to act discretionally in order to reach different goals.

Keywords:European Central Bank, Great Recession, Monetary policy, Neoliberalism, Ordoliberalism.

Jel codes:B22, E00, E50, E52, E58

  1. Amable B. (2017). Dirigisme and modernism vs Ordoliberalism. In Hien and Joerges (eds) (2017): 37-49.
  2. Angell J.W. (1935). The 100 Per Cent Reserve Plan, The Quarterly Journal of Economics, 50(1): 1-35.
  3. Arestis P. and Sawyer M. (2008). New consensus macroeconomics and inflation targeting: Keynesian critique, Economia e Sociedade, 17: 631-655. DOI: 10.1590/S0104-06182008000400006
  4. Asso P.F., Kahn G. and Leeson R. (2007). The Taylor Rule and the Transformation of Monetary Policy, Federal Reserve Bank of Kansas City Research Working Papers, no. 07-11.
  5. Beck T. and H. Kotz (eds) (2017). Ordoliberalism: A German oddity?, London, CEPR Press. -- https://voxeu.org/content/ordoliberalism-german-oddity.
  6. Beck T. and H. Kotz (2017). Introduction. In Beck T. and H. Kotz (eds) (2017): 11-24.
  7. Bellofiore R. and Halevi J. (2010). La Grande Recessione e la Terza Crisi della Teoria Economica, -- https://www.researchgate.net/publication/324248082_La_Grande_Recessione_e_la_Terza_Crisi_della_Teoria_Economica.
  8. Bernholz P. (1989). Ordo-Liberals and the Control of the Money Supply. In Peacock A. and H. Willgerodt (eds.) (1989).
  9. Bibow J. (2004). Investigating the Intellectual Origins of Euroland’s Macroeconomic Policy Regime: Central Banking Institutions and Traditions in West Germany After the War, Levy Economics Institute of Bard College Working Papers, n. 406.
  10. Bibow J. (2009). On the origin and rise of central bank independence in West Germany, The European Journal of the History of Economic Thought, 16(1): 155-190. DOI: 10.1080/09672560802707498
  11. Bibow J. (2013). At the crossroads: the euro and its central bank guardian (and saviour?), Cambridge Journal of Economics, 37(3): 609-626.
  12. Bibow J. (2018). How Germany’s anti-Keynesianism has brought Europe to its knees, International Review of Applied Economics, 32(5): 569-588. DOI: 10.1080/02692171.2017.13699382018
  13. Biebricher T. (2020). Ordoliberalism and the eurozone crisis. Toward a more perfect market of jurisdictions?. In Dold M. and T. Krieger (eds.) (2020).
  14. Bofinger P. (2016). German macroeconomics: The long shadow of Walter Eucken, Vox, 7 June.
  15. Borscia A. (2019). Ordoliberalismo: l’universo parallelo dell’economia tedesca, -- https://www.yanezmagazine.com/ordoliberalismo-germania/.
  16. Bresciani-Turroni C. (1937). The Economics of Inflation. A Study of Currency Depreciation in Post War Germany, London, John Dickens & Co Ltd.
  17. Carstensen K. (2006). Estimating the ECB Policy Reaction Function, German Economic Review, 7(1): 1-34.
  18. Cesaratto S. (2017). Alternative interpretations of a state less currency crisis, Cambridge Journal of Economics, 41(4): 977-998.
  19. De Cecco M. (1998). The Lender of Last Resort, CIDEI Working Paper n. 49.
  20. De Cecco M. (2007). Gli anni dell’incertezza, Roma-Bari, Laterza.
  21. De Cecco M. (2009). Finanza ed economia reale: riflessioni sulla crisi. In Inaugurazione dell’Anno Accademico 2008-2009, Verona: Università degli Studi di Verona, 2009. -- Available at: http://www.univr.it/documenti/Documento/allegati/allegati930497.pdf.
  22. De Grauwe P. (2007). Economics of Monetary Union, Oxford, Oxford University Press.
  23. de Haan J. and Eijffinger S.C.W. (2017). Central bank independence under threat?, CEPR Policy Insightn. 87.
  24. Dietze C.V., Eucken W. and Lampe A. (2016). Ordine economico e sociale. In Forte F. and F. Felice (eds.) (2016): 93-118.
  25. Dold M. and T. Krieger (eds.) (2020). Ordoliberalism and European economic policy, Between Realpolitik and Economic Utopia. London and New York, Routledge.
  26. Draghi M. (2013). Opening remarks at the session “Rethinking the Limitations of Monetary Policy”, Speech at the farewell conference honouring Governor Stanley Fischer, The Israel Museum, Jerusalem 18 June, -- https://www. ecb.europa.eu/press/key/date/2013/html/sp130618.en.html, 2013.
  27. ECB (1999). Monthly Bulletin. January, Frankfurt am Main, European Central Bank.
  28. ECB (2001). Annual report 2000. European Central Bank, Frankfurt am Main.
  29. ECB (2002). Annual report 2001. European Central Bank, Frankfurt am Main.
  30. ECB (2003). Monthly Bulletin. June, Frankfurt am Main, European Central Bank.
  31. ECB (2012). Monthly Bulletin. March, Frankfurt am Main, European Central Bank.
  32. ECB (2016). What is the role of the exchange rate? -- https://www.ecb. europa.eu/ecb/educational/explainers/tell-me-more/html/role_of_exchangerates.en.html.
  33. ECB (2017). The targeted longer-term refinancing operations: an overview of the take-up and their impact on bank intermediation, European Central Bank Economic Bulletin, 3: 42-46.
  34. ECB (2021). The ECB’s price stability framework: past experience, and current and future challenges, ECB Occasional Paper Series, 269, September: 1-128.
  35. Eucken W. (1923). Osservazioni sulla questione monetaria tedesca. In Forte F., Felice F. and E. Di Nuoscio (eds.) (2020): 3-102.
  36. Eucken W. (1925). La questione monetaria internazionale. Una panoramica. In Forte F., Felice F. and E. Di Nuoscio (eds.) (2020): 103-122.
  37. Eucken W. ([1940] 1951). I fondamenti della Economia politica, Firenze, G.C. Sansoni Editore.
  38. Eucken W. (1946). Osservazioni sulla questione monetaria. Il parere di Eucken. In Forte F., Felice F. and E. Di Nuoscio (eds.) (2020): 3-102.
  39. Eucken W. (1949). Die Wettbewerbsordnung und ihre Verwirklichung, ORDO Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, 2: 1-99.
  40. Eucken W. (1952a). This Unsuccessful Age or The Pains of Economic Progress, New York, Oxford University Press.
  41. Eucken W. (1952b). Grundsätze der Wirtschaftspolitik, Tübingen, J.C.B. Mohr.
  42. Fazio G. (ed.) (2013). Oltre l’austerità. Disputa sull’Europa, Roma, Castelvecchi.
  43. Feld L.P., Köhler E.A. and Nientiedt D. (2015). Ordoliberalism, pragmatism and the eurozone crisis. How the German tradition shaped economic policy in Europe, European Review of International Studies, 2(3): 48-61.
  44. Feld L.P., Köhler E.A. and Nientiedt D. (2017). The “Dark Ages of German macroeconomics” and other alleged shortfalls in German economic thought. In Beck T. and H. Kotz (eds) (2017): 41-52. -- https://voxeu.org/content/ordoliberalism-german-oddity, pp. 45.
  45. Ferrari G.F and Moraldo S.M. (2021). La Germania tra integrazione europea e sovranismo, Berlin, Springer.
  46. Figuera S. and Pacella A. (2019). Solidarity, Subsidiarity and the Role of the State: Food for Thought from the Late 19th to Early 20th Century Debate, Il Pensiero Economico Italiano, 27(1): 83-102. DOI: 10.19272/201906301005
  47. Figuera S. and Pacella A. (2021). La teoria euckeniana della moneta: spunti per una riflessione critica, Moneta e Credito, 74(296): 275-299. DOI: 10.13133/2037-3651/17512
  48. Fontana G. and Palacio-Vera A. (2003). Is There an Active Role for Monetary Policy in the Endogenous Money Approach?, Journal of Economic Issues, 37(2): 511-517. DOI: 10.1080/00213624.2003.11506600
  49. Forte F. and F. Felice (eds.) (2016). Il liberalismo delle regole. Genesi ed eredità dell’economia sociale di mercato, Soveria Mannelli: Rubbettino.
  50. Forte F., Felice F. and E. Di Nuoscio (eds.) (2020). Moneta, sviluppo e democrazia. Saggi su Economia Sociale di Mercato e teoria monetaria, Soveria Mannelli: Rubbettino.
  51. Friedman M. (1968). The Role of Monetary Policy, The American Economic Review, 58(1): 1-17.
  52. Gerdesmeier D. and Roffia B. (2003). Empirical estimates of reaction functions for the Euro area, ECB Working Papers, n. 206.
  53. Gerdesmeier D. and Roffia B. (2004). Taylor rules for the euro area: the issue of real-time data, Deutsche Bundesbank Discussion Papers, n. 37.
  54. Gerlach S. and Schnabel G. (1999). The Taylor Rule and Interest rates in the EMU Area: a Note, Bank for International Settlements Working Papers, n. 79.
  55. Goldschmidt N. (2016). La politica ordinamentale della concorrenza. I principi costitutivi. Un’introduzione. In Forte F. and F. Felice (eds.) (2016): 45-63.
  56. Goldschmidt N. and Wohlgemuth M. (2016). Nascita ed eredità della tradizione friburghese dell’economia ordinamentale. IIn Forte F. and F. Felice (eds.) (2016): 21-44.
  57. Graham B. (1937). Storage and Stability: A Modern Ever-Normal Granary, New York, McGraw-Hill.
  58. Graham B. (1947). Money as Pure Commodity, American Economic Review, 37(2): 304-307.
  59. Grozelier A.M., Hacker B., Kowalsky W., Machnig J., Meyer H. and B. Unger (eds) (2013). Roadmap to a Social Europe. Social Europe Report, Brussels, Social Europe Ltd. -- https://www.socialeurope.eu/book /ser-2-roadmap-to-a-social-europe.
  60. Habermas J. (2013). Democracy, Solidarity And the European Crisis. In Grozelier A.M., Hacker B., Kowalsky W., Machnig J., Meyer H. and B. Unger (eds) (2013): 2.
  61. Halevi J. (2022). Il neomercantilismo tedesco alla prova della guerra, Moneta e Credito, 75(228): 203-211. DOI: 10.13133/2037-3651/17742
  62. Hartmann P. and Smets F. (2018). The first twenty years of the European Central Bank monetary policy, ECB Working Papers, n. 2219.
  63. Herr H. (2002). ECB monetary policy during the ‘Weak Euro’ period of 1999/2001: Theoretical approach and reality, Intereconomics, 37(6): 321-327.
  64. Hien J. (2017). The Religious Foundations of the European Crisis. JCMS Journal of Common Market Studies, 1-20.
  65. Hien J. and C. Joerges (eds.) (2017). Ordoliberalism, Law and the Rule of Economics, Huntington, Hart (Kindle ed.)
  66. Issing O. (2004). On the primacy of price stability. Prager-Frühlings-Vortrag Liberální Institut Professor Otmar Issing, Member of the Executive Board of the European Central Bank Prague, 10 June, -- https://www.ecb.europa.eu/press/key/date/2004/html/sp040610.en.html.
  67. Issing O. (2005). The monetary pillar of the ECB, presented at The ECB and its Watchers, 3 June 2005. -- http://www.ecb.int/press/key/date/2005/html/sp050603.en.html.
  68. Issing O. (2016). Central Banks – from Overburdening to Decline?, SAFE White Paper Series, n. 42.
  69. Lechevalier A. (2017). Why and How has German Ordoliberalism Become a French Issue? Some Aspects about Ordoliberal Thoughts we can Learn from the French Reception. In Hien and Joerges (eds) (2017): 50-91.
  70. Lutz F.A. (1936). Il problema di fondo della costituzione monetaria. In Forte F., Felice F. and E. Di Nuoscio (eds.) (2020): 185-292.
  71. Lutz F.A. (1949). Politica monetaria e ordine economico. In Forte F., Felice F. and E. Di Nuoscio (eds.) (2020): 159-184.
  72. Lutz F.A. (1954). The Case for Flexible Exchange Rates, Banca Nazionale del Lavoro Quarterly Review, 7: 175-85.
  73. Lutz F.A. (1961). International Payments and Monetary Policy in the World Today, Wicksell Lectures 1961, Stockholm, Almquist and Wicksell.
  74. Lutz F.A. (1961). International Economic Disequilibrium. In Lutz (ed.) (1961): 7-21.
  75. Mesini L. (2018). Ordoliberalismo: trionfo e crisi dell’ideologia tedesca, Limes, 12: 233-243.
  76. Mersch Y. (2017). Behaving responsibly in a low interest rate environment: A central banker’s perspective. Speech by Yves Mersch, Member of the Executive Board of the ECB, Stiftung Marktwirtschaft: Expertentagung “5th Kadener Gespräch”, Alveslohe, 10 February, -- https://www.ecb.europa.eu/press/ key/date/2017/html/sp170210.en.html.
  77. Mirowski P. and D. Plehwe (2015) (eds.). The Road from Mont Pèlerin. The Making of the Neoliberal Thought Collective, Cambridge/Mass., Harvard University Press.
  78. Nedergaard P. (2020). The ordoliberalisation of the European Union?, Journal of European Integration, 42(2): 213-230. DOI: 10.1080/07036337.2019.1658751
  79. Orphanides A. (2003). Historical Monetary Policy Analysis and the Taylor Rule, Journal of Monetary Economics, 50(5): 983-1022. DOI: 10.1016/S0304-3932(03)00065-5
  80. Peacock A. and H. Willgerodt (eds.) (1989). German Neo-Liberals and the Social Market Economy, New York, St. Martin’s Press.
  81. Praet P. (2017). Unconventional measures – a case of realpolitik?. In T. Beck and H. Kotz (eds) (2017): 79-90.
  82. Pühringer S. (2017). The Success Story of Ordoliberalism as the Guiding Principle of German Economic Policy. In Hien J. and C. Joerges (eds.) (2017): 238-261.
  83. Rostagno M., Altavilla C., Carboni G., Lemke W., Motto R., Saint Guilhem A. and Yiangou J. (2019). A tale of two decades: the ECB’s monetary policy at 20, ECBWorking Paper Series n. 2346.
  84. Sauer S. and Sturm J.E. (2003). Using Taylor Rules to understand ECB monetary policy, CESifo Working Papers, n. 1110.
  85. Schumpeter J.A. (1990). Storia dell’analisi economica, Torino, Bollati Boringhieri.
  86. Sinn A.W. (2022a). The ECB has been driven EU inflation, Project Sindacate, 30 September.
  87. Sinn A.W. (2022b). The end of the EU’s free lunch, Project Sindacate, 2 August.
  88. Solari S. (2017). The Tepid Reception of Ordoliberalism in Italy and Present-Day Dissent. In In Hien J. and C. Joerges (eds.) (2017): 130-155.
  89. Somma A. (2021). Da Weimar a Bonn Genealogia della costituzione economica tedesca. In G.F Ferrari and S.M. Moraldo (eds.) (2021): 101-123.
  90. Streeck W. (2015). Heller, Schmitt and the Euro, European Law Journal, 21(3): 361-370.
  91. Streit M.E. (1992). Economic Order, Private Law and Public Policy. The Freiburg School of Law and Economics in Perspective, Journal of Institutional and Theoretical Economics, 148(4): 675-704.
  92. Svensson L.E.O. (2008). What have economists learned about monetary policy over the past 50 years. -- https://larseosvensson. se/files/papers/Buba%20709.pdf.
  93. Taylor J.B. (1993). Discretion versus policy rules in practice, Carnegie-Rochester Conference Series on Public Policy, 39: 195-214. DOI: 10.1016/0167-2231(93)90009-L
  94. Trichet J.C. (2010). An anchor of stability and confidence. Contribution by Mr Jean-Claude Trichet, President of the European Central Bank, to Frankfurter Allgemeine Zeitung, Frankfurt am Main, 26 March, BIS Review, 39.
  95. Vanberg V.J. (2000). Globalization, Democracy, and Citizens’ Sovereignty: Can Competition Among Governments Enhance Democracy?, Constitutional Political Economy, 11: 87-112.
  96. Vanberg V.J. (2010). Competition among governments: The state’s two roles in a globalized world, Freiburger Diskussionspapiere zur Ordnungsökono-mik, No. 10/2.
  97. Wilkinson M. (2019). Authoritarian liberalism in Europe: a common critique of neoliberalism and ordoliberalism, Critical Sociology, 45(7-8): 1023-1034. DOI: 10.1177/0896920519837325
  98. Winkler A. (2017). Ordoliberalism, post-crisis monetary policy and the German ‘Angst’. In Beck T. and H. Kotz (eds) (2017): 91-106.
  99. Zanini A. (2022). Ordoliberalismo. Costruzione e critica dei concetti, Bologna, il Mulino.

Stefano Figuera, Guglielmo Forges Davanzati, Andrea Pacella, Considerations on the Legacy of Ordoliberalism in European Monetary Policy in "HISTORY OF ECONOMIC THOUGHT AND POLICY" 2/2022, pp 95-122, DOI: 10.3280/SPE2022-002004