The chapter deals with the development of the welfare state in the first three decades after World War II, in which the West German economy ran through a remarkable catching-up process. Economic policy in the new Federal Republic of Germany in that period was decisively shaped and influenced by the ordoliberal ideas of Walter Eucken and the Freiburg school and the principles of the social-market economy. Whereas Keynesianism of the Hicks-Samuelson neoclassical synthesis had already evolved into the dominant view in the academic sphere during the 1950s, it took until the 1966–67 recession for Keynesianism to find a late (and short) entry into German economic policy with the entry of the Social Democrats into government and their charismatic minister of economics, Karl Schiller.
Ordoliberalism, the Social Market Economy and Keynesianism in Germany 1945-1974, in R. Backhouse, B. Bateman, T. Nishizawa and D. Plehwe (Hrsg.), Liberalism and the Welfare State: Economists and Arguments for the Welfare State, Oxford 2017: Oxford University Press.
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