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1. The German Undervaluation Regime under Bretton Woods How Germany Became the Nightmare of the World Economy

Author:
Martin Höpner
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Germany is an undervaluation regime, a regime that steers economic behavior towards deterioration of the real exchange rate and thereby towards export surpluses. This regime has brought the eurozone to the brink of collapse. But it is much older than the euro. It was established during the Bretton Woods years and has survived all subsequent European currency orders. The regime operates in two steps: competitive disinflation against trading partners; and resistance against correcting revaluations. The Bretton Woods order provid- ed perfect conditions for the establishment and perpetuation of the regime: it was flexible enough for sufficient macroeconomic policy autonomy to bring about differential inflation rates, and sticky enough to delay and minimize revaluations.
Topic:
Political Economy, Regional Cooperation, Capitalism, and Inflation
Political Geography:
Europe, Germany, and Central Europe

2. Parteigängerr und Landschaftspfleger: Eine Analyse der Parteispenden großer deutscher Unternehmen, 1984-2005

Author:
Martin Höpner
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Notably during election campaigns, donations have become an indispensable part of party finance. The paper analyzes the most controversial part of this form of party finance: donations provided by corporate bodies. The data base comprehends all party donations given by the 100 largest German firms between 1984 and 2005. The readiness to donate, amounts of donations and their distribution among the political parties are being analyzed. Donations are likely to be higher when firms belong to the center of the network of interlocking directorates. Two donation strategies can be distinguished: Sponsorship of the political center-right and donations all over the political spectrum (the so-called landscape conservation strategy). During the observation period, the landscape conservation strategy has gained importance among firms but not among individual persons and employers' associations. While family-owned firms give comparatively few donations to the SPD, high degrees of employees' codetermination seem to decrease the likelihood of large donations to CDU/CSU and FDP.
Political Geography:
Germany

3. European Corporate Governance Reform and the German Party Paradox

Author:
Martin Höpner
Publication Date:
08-2003
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
This paper addresses the current discussion on links between party politics and production regimes. Why do German Social Democrats opt for more corporate governance liberalization than the CDU although, in terms of the distributional outcomes of such reforms, one would expect the situation to be reversed? I divide my analysis into three stages. First, I use the European Parliament's crucial vote on the European takeover directive in July 2001 as a test case to show that the left-right dimension does indeed matter in corporate governance reform, beside cross-class and cross-party nation-based interests. In a second step, by analyzing the party positions in the main German corporate governance reforms in the 1990s, I show that the SPD and the CDU behave “paradoxically” in the sense that the SPD favored more corporate governance liberalization than the CDU, which protected the institutions of “Rhenish,” “organized” capitalism. This constellation occurred in the discussions on company disclosure, management accountability, the power of banks, network dissolution, and takeover regulation. Third, I offer two explanations for this paradoxical party behavior. The first explanation concerns the historical conversion of ideas. I show that trade unions and Social Democrats favored a high degree of capital organization in the Weimar Republic, but this ideological position was driven in new directions at two watersheds: one in the late 1940s, the other in the late 1950s. My second explanation lies in the importance of conflicts over managerial control, in which both employees and minority shareholders oppose managers, and in which increased shareholder power strengthens the position of works councils.
Topic:
Democratization, Government, and Politics
Political Geography:
Europe and Germany

4. The Politics of the German Company Network

Author:
Martin Höpner and Lothar Krempel
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
For over 100 years, the German company network was a major feature of organized corporate governance in Germany. This paper uses network visualization techniques and qualitative-historical analysis to discuss the structure, origins and development of this network and to analyze the reasons for its recent erosion. Network visualization makes it possible to identify crucial entanglement patterns that can be traced back historically. In three phases of network formation – the 1880s, 1920s and the 1950s –, capital entanglement resulted from the interplay of company behavior and government policy. In its heyday, the company network was de facto encompassing and provided its core participants, especially the banks, with a national, macroeconomic perspective. In the 1970s, a process of increased competition among financial companies set in. In the 1980s and 1990s, declining returns from blockholding and increased opportunity costs made network dissolution a thinkable option for companies. Because of the strategic reorientation of the largest banks toward investment banking, ties between banks and industry underwent functional changes. Since the year 2000, the German government's tax policy has sped up network erosion. Vanishing capital ties imply a declining degree of strategic coordination among large German companies.
Topic:
Economics, Government, and Governance
Political Geography:
Europe and Germany