Post #97

🇩🇪The Freiburg School is a continental school of economic thought that emerged in Germany in the 1930s–1950s as a response to the institutional failures of both planned economies and unrestricted capitalism. Its representatives — Walter Eucken, Franz Böhm, Hans Grossmann-Doerth — developed the concept of Ordnungspolitik (“policy of order”), under which the state does not directly control economic processes but rather establishes the institutional framework that enables them to function. 🎓 It emphasizes a functional analysis of economic forms: the economy is seen as a system of coordination where the order of interaction is more important than the extent of state intervention. The key distinction lies between centralized and decentralized coordination. 📚Normative neutrality: economic theory should describe the conditions of efficiency rather than prescribe redistributive goals. Competition as an institutional construct: it does not arise spontaneously but requires legal protection, antitrust oversight, and transparency of market access. 🏛The state as an architect, not an operator: its task is to establish the legal and institutional foundations — property rights, freedom of contract, and judicial independence — rather than to manage prices or resource flows. Ordo-liberalism became the intellectual basis for Germany’s social market economy — a model combining market coordination with social compensation. 🏴󠁧󠁢󠁥󠁮󠁧󠁿Unlike Anglo-Saxonneoliberalism, the Freiburg tradition focuses on the legal and institutional order, not on deregulation. Walter Eucken, in Foundations of Economics, formulated the principle: “Freedom requires order” — not as a slogan, but as an institutional axiom. 📱Telegram I 📱LinkedIn