High inflation rates, for example, disrupt this signalling and steering function of prices. Walter Eucken witnessed hyperinflation and the Great Depression for himself, and his experiences fed into his oeuvre. [2] He understood that a competitive order can only be made a reality if monetary stability is assured.
Thus, Eucken gave priority to a policy of stable currency, calling this the “primacy of monetary policy”. [3]  Eucken’s philosophy laid the foundations for German post-war economic policy, which was built around the concept of a social market economy.