Theory
Eucken's ordoliberalism, which is the German variant of neoliberalism, claims that the state has the task to provide the political framework for economic freedom, in contrast to laissez-faire. This includes a legal and institutional framework, including maintenance of private property, enforcement of private contracts, liability, free entry, and monetary stabilization. In this, the state should refrain from directing or intervening in the economic processes of daily practices, as in a centrally planned economy (Molsberger, 2008).
The idea of ordoliberalism was introduced for the first time in 1937 in Ordnung der Wirtschaft, a periodical published by Walter Eucken, Franz Böhm and Hans Großmann-Doerth. From 1948 on it was further developed in the journal ORDO.
Read more about this topic: Walter Eucken
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