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Growth and Business Cycle

A prospering economy raises the standard of living of the population, creates jobs and fills the state coffers, from which tasks such as education, environmental protection and social security are financed.

About the topic

Over the past 60 years, the social market economy has enabled the citizens of the Federal Republic to increase their nominal income fivefold on average. Even though prosperity has grown considerably over the long term, economic setbacks have had to be endured time and again, because economic growth does not proceed uniformly, but in waves. The yardsticks for economic development include consumption, public and private investment and gross domestic product. A positive economic trend with high growth rates and increasing employment is followed by a downturn with low growth and fewer people in work.

The Institute of the German Economy monitors the current economic situation in Germany and economic developments in other countries using various instruments and regularly publishes economic forecasts. In this way, the IW helps to improve the basis for decision-making in politics and business.

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2021 Global Trade and Innovation Policy Alliance Annual Summit
Hubertus Bardt Event 2. December 2021

ITIF Conference: 2021 Global Trade and Innovation Policy Alliance Annual Summit

The Global Trade and Innovation Policy Alliance (GTIPA) represents a network of more than 40 world-leading think tanks dedicated to advancing a positive view of trade, globalization, and innovation for the benefit of the global community.

IW

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Disrupted Production, Price Rises and Pandemic Policies
IW-Forschungsgruppe Gesamtwirtschaftliche Analysen und Konjunktur IW-Trends No. 4 29. November 2021

IW Economic Forecast Winter 2021: Disrupted Production, Price Rises and Pandemic Policies

In the course of 2021 Germany’s economic recovery has once again perceptibly lost momentum. After the strain brought about at the beginning of the year by the lockdown for the second and third waves of the Covid19 pandemic, manufacturing and construction ...

IW

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China's digital policy: a threat to European business models
Vera Demary / Jürgen Matthes IW-Kurzbericht No. 73 1. October 2021

China's digital policy: a threat to European business models

China is making great strides in regulating digitization. Some aspects are similar to European approaches, but Chinese laws on data security and protection go much further. This may result in a threat to European business models.

IW

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Key Issues for Reforming the World Trade Organization
Jürgen Matthes / Kyungjin Song / Chris Hattingh / Stephen Ezell / Philip Thompson External Publication 28. September 2021

Key Issues for Reforming the World Trade Organization

The members of the Global Trade & Innovation Policy Alliance (GTIPA), a network of over 40 think tanks in 26 nations, have come together to articulate a positive vision that trade, globalization, and innovation—if conducted on private enterprise-led, ...

IW

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2. Dec 2. Dec
Hubertus Bardt Event 2. December 2021

ITIF Conference: 2021 Global Trade and Innovation Policy Alliance Annual Summit

The Global Trade and Innovation Policy Alliance (GTIPA) represents a network of more than 40 world-leading think tanks dedicated to advancing a positive view of trade, globalization, and innovation for the benefit of the global community.

IW

Read study
Disrupted Production, Price Rises and Pandemic Policies
IW-Trends No. 4 29. November 2021

IW Economic Forecast Winter 2021: Disrupted Production, Price Rises and Pandemic Policies

IW-Forschungsgruppe Gesamtwirtschaftliche Analysen und Konjunktur

In the course of 2021 Germany’s economic recovery has once again perceptibly lost momentum. After the strain brought about at the beginning of the year by the lockdown for the second and third waves of the Covid19 pandemic, manufacturing and construction companies are now struggling with a shortage of materials, while higher prices for fossil fuels are imposing an additional burden.

IW

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Recommendations to the new federal government
IW-Policy Paper No. 26 28. October 2021

What business needs to shape the transformation: Recommendations to the new federal government

Vera Demary / Jürgen Matthes / Axel Plünnecke / Thilo Schaefer

Germany is facing major structural challenges stemming from the four trends digitalisation, decarbonisation, demographics and de-globalisation. These trends occur simultaneously and cause additional demand for policy, especially at their interfaces, so that the transformation process can be shaped successfully.

IW

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6. Oct 6. Oct
Adriana Neligan Event 6. October 2021

Sustainable Finance: How to finance and achieve global decarbonisation

As governments across the world continue to face the challenge of tackling Covid-19, the current crisis also presents an unprecedented opportunity to reboot global economies in a manner that builds more sustainable, inclusive, and resilient societies, in line with the UN Sustainable Development Goals and the Paris Agreement.

IW

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China's digital policy: a threat to European business models
IW-Kurzbericht No. 73 1. October 2021

China's digital policy: a threat to European business models

Vera Demary / Jürgen Matthes

China is making great strides in regulating digitization. Some aspects are similar to European approaches, but Chinese laws on data security and protection go much further. This may result in a threat to European business models.

IW

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