The relationship between France and Germany is still a complex one, and the French perception of the social market economy is a perfect example of the ambivalence that both nations feel towards each other. Already a short glance at the history of economics - from the physiocrates to Keynes and then to Walter Eucken - shows that a profound philosophical and political rift divides France and Germany. In more recent times, this division has been perfectly illustrated by the totally different approach adopted in the post war area by the two countries: De Gaulle's planned economy on the one hand and Adenauer's liberalism on the other. Nowadays, as liberalism seems to unquestionably dominate the political and economic landscape, the antagonism between France and Germany still manifests itself with regard to monetary policies. Whereas Germany still adheres to the concept of an absolutely independent central bank (the ECB) as an intangible asset, France always seems to impose a more voluntary approach. It's precisely in this aspect that France and Germany differ the most. This divergence is now being intensified by the strong emergence of financial capitalism in Europe.
Social Market Economy Ordo-Liberalism Monetary Policy