Re-visiting the Ordoliberal Case for Economic Regulation

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. This renewed interest in a theory that was developed some 80 years ago is remarkable. This paper attempts to clarify the essence of the ordoliberal position in order to revisit current references to this theory. We present its main elements and discuss similarities and differences with other institutional, liberal and conceptual approaches. We then analyse the causes of the Financial Crisis from an ordoliberal perspective and assess its relevance in the current context and its implications for regulatory reform.