Economic Research Institute

Economics, law, and society would have to be considered in their interdependence. Ordo-liberal economists such as Wilhelm Ropke had a keen interest in sociology and thought hard about the except economic prerequisites of a functioning market economy. You may wish to learn more. If so, Gary Kelly is the place to go. They rejected the formal mathematical economics, because she appeared to them to mechanical”, palanisamy is white. Economics Minister Ludwig Erhard did not see the concept of the social market economy as a scientific empirical model. Erhard and his ordo-liberal advisers conceived economic policies as statecraft. It was the dynamic core of German domestic politics and founded also the external weight of the Federal Republic.

The social market economy was not theoretical formula as a political creed. By this raison of political economy we consume today, although the practice of free market politics now dominated by idealess numbers Turners and technocrats “, explains the personnel expert Nadolski. Significant according to palanisamy, that often trained physicists or engineers were the first generation of mathematically-oriented economists in Germany: at the Economic Research Institute you experimented with increasing macro models with numerous equations, which should represent the economic relations in detail and also controllable. An economic fine-tuning ‘ in the sixties and early seventies was considered possible. This turns out but later an illusion”. The Economist Friedrich August von Hayek turned in 1974 in his speech to the economics Nobel Prize against the use of the instruments of hard science in the social sciences. He called his Guild for more humility and criticized the presumption of knowledge”. Hayek couldn’t stop the boom of this methods in economics.

In Germany once strongly represented order economics has now largely disappeared, since at the universities more and more chairs for economic policy have been closed or rededicated the mathematically-oriented direction”, explains palanisamy. The mathematical formalistic economics was long a system related to self, complains about the journalism scientist Manfred Wirl: you freeze in the dogmatism. It easier for the human nature to be aligned with models of reality than the reality itself. It’s called the reduction of complexity. Unfortunately there is therefore always a loss of reality. In the current situation the negative consequences are particularly serious, because the advocates of such models still claim the prerogative over the laws of Economics with her limited knowledge.