Dr. Tim H. Stuchtey: “Ordnungspolitik” and Social Market Economy
by Tim H. Stuchtey
Senior Fellow and Director of the Business and Economics Program at the American Institute for Contemporary German Studies (AICGS) in Washington, D.C.
It is often said with an ironic undertone that in time of crisis Americans take action while Europeans talk about institutional reforms. And of course there is a bit of truth behind this without implying that any side is right. When you look at Germany's approach to handle the current economic crisis, Americans sometimes wonder why the world exporting champion is not taking more action. In order to understand Germany's economic policy one has to understand the foundation and the principles of the German economic model of the Social Market Economy and of Ordnungspolitik.