Central banks were treasury financing agents everywhere but Germany until the Keynesian era ended.

Evidence

During the Keynesian era, central banks almost everywhere were dependent creatures. That is, central banks were the financing agent for the national treasury: they cut the checks that the politicians said needed to be cut. As noted earlier, the one exception was Germany’s Bundesbank with its singular goal of stabilizing the price level, which was only made possible by its unique late-developer profile and equally unique ordoliberal instruction sheet. — Mark Blyth, Austerity, 420

Categorization

• XREF: Connects to Mattei’s account of how austerity achieved consensus — the central-bank independence shift is part of the same institutional story. — connects to: Austerity survived Keynesian dominance only in the German-speaking world — Mark Blyth, Austerity: The History of a Dangerous…, 352; 1920s German hyperinflation stemmed from WWI debt financing, not stimulus — Mark Blyth, Austerity: The History of a Dangerous…, 162; Postwar IMF Keynesianism concealed classical liberal assumptions derived from 1920s Treasury logic — Mark Blyth, Austerity: The History of a Dangerous…, 443 (+1 more)

Broader Connections

• Austerity survived Keynesian dominance only in the German-speaking world #complicates (0.80) — Mark Blyth, Austerity, 352
• 1920s German hyperinflation stemmed from WWI debt financing, not stimulus #qualifies (0.75) — Mark Blyth, Austerity, 162
• Postwar IMF Keynesianism concealed classical liberal assumptions derived from 1920s Treasury logic #expands (0.72) — Mark Blyth, Austerity, 443
• Bretton Woods institutionalized the monetary nationalism Hayek had attacked since the 1930s #expands (0.70) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 424