Abstract

The Significance of Monetary Theory for the Financial Constitution

This article examines the significance of monetary theory for the design and understanding of the German and European financial and monetary constitution.

To this end, the theoretical foundations of the positive financial and monetary constitution are first presented, as well as the changes they have undergone since the enactment of the Basic Law.

Subsequently, heterodox monetary theories are introduced, which in many respects are diametrically opposed to the ideas on which the positive financial and monetary constitution is based.

On the basis of the positive financial constitution, however, the paradigm shift in our understanding of the monetary order introduced by these theories can only be taken into account to a very limited extent.

Moreover, the fact that the traditional ideas are fixed at the constitutional level makes it difficult to bring about changes in this respect by political means.

In this sense, the heterodox approaches presented and the contribution as a whole can only have a limited influence on positive law and its application. However, they can at least contribute to the understanding of financial and monetary law no longer as a purely technical matter, but as a political issue to be decided democratically.