Browsing by Subject "Social market economy"

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Soziale Marktwirtschaft und Ordoliberalismus : ausgewählte ordnungspolitische Aspekte und ihre Anwendung auf die Transitionsländer
(2019) Ivanovic, Vladan; Hagemann, Harald
The dissertation “Social market economy and Ordoliberlism: Selected institutional aspects and its application in transition countries“ analyses the pivotal institutional structures from the perspective of the proponents of social market economy and ordoliberals. Those institutional aspects determine economic development in the long run. In that sense, the research is linked to the contemporary debate on an importance of institutions in determing a long term economic and social progress. The central pillar of order within social market economy and ordoliberalism refers to the importance of stable value of money for efficient exchange and relations between economic agents. The free price order is as fundamental coordination mechanism as it is essential for creation of significant economic and social advantages in national economy. On the other side, in inflatory environment comes to substantial allocative inefficiences. There is as well an important disruptive influence of inflation on the state structures and freedom. The key role in establishing and maintaining the price stability belongs to an independent central bank. It is necessary, but not sufficient condition for it. The stability of prices and the power of central bank to maintain the stability of prices depend on the coordination with the other state instances, especially with the fiscal authorities, and other important circumstances, such as wage development and velocity of money. The second part of the thesis addresses various issues regarding the competitive order and supporting institutional structure for its development. Competitive order is valued as essential for enabling and protecting the freedom, social mobility, minimisation of transaction costs, rise of the exchange and deepening of the economic relations between economic agents. Several requirements have to be met in order to establish a competitive order. First refers to market openness, which is essential for an efficient participation in the world market. Private property regime as a structural right in economy represents the second precondition. Rule of law is the third requirement which is essential for the protection of individual economic agents. It protects them from predatory behaviour of other economic agents as well from the predatory state activities. In order to escape potentially negative impact of the political process on predictability, reliability and impartiality of institutional structure, which is warranted by rule of law, a clear separation of tasks and responsibilities between different elements of state structure is required. Particularly big challenge for the rule of law and its consequence in the form of competitive order is the concentration of private economic power. An establishment of a credible, consistent, and unbiased legal framework is the fundamental prerequisite for limiting inefficiences arising from the concentration of economic power. To intensify and spread state interventions may cause substantial risks in national economy. They jeopardise functionality and efficiency of political system which is essential for the properly functioning of institutional structure. There is, though, enough place for different measures of economic policy if it comes to structural imbalances in the economy. The third part is devoted to the analysis of the guiding ideas regrading the income distribution and general distribution of resources in the conomy. The state measures regarding the redistribution should mitigate the impacts of market failure, as well as market risks and uncertainities. State and the level of the development of the economy and already emloyed state measures are defining possibilities, effectiveness and efficiency of redistributive policy measures. The fourth part empirically analyses different institutional aspects in the transition countries. On the basis of a new de facto index of central bank independence is found that there is a significant effect of it on an economic growth and its volatility. Generally the more independent is a central bank, the larger will be an economic growth and greater its stability. Further, it is determined that the institutional quality measured by WGI exerted a significant influence on an economic growth in transition countries as well. Regarding the inequality, all transition countries recorded the rise of income inequality since the beginning of the transition, which was especially emphasised in the least developed countries.