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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.

German Economic Institute German Economic Institute

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The Productivity Effects of Capital Formation in Germany
Michael Grömling IW-Trends No. 2 9. May 2022

The Productivity Effects of Capital Formation in Germany

Despite broad-based digitalisation, productivity advances in Germany in recent years have been considerably lower than in previous decades. This paper conducts a growth accounting which points to steeply declining stimuli from technical progress and especially from capital formation.

IW

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How big is the crisis?
Sonja Beer IW-Report No. 19 5. May 2022

China's real estate sector: How big is the crisis?

This report analyses the rising risks in the Chinese financial market as well as the current tensions in the Chinese real estate market.

IW

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Exploiting potential for sustainable growth
Hubertus Bardt / Sandra Parthie / Christian Rusche IW-Report No. 12 25. March 2022

European competitiveness: Exploiting potential for sustainable growth

The EU's position as a major global economic power is increasingly under threat. On the one hand, this is a consequence of the crises that the EU has faced in the last two decades. In particular, these include the global financial crisis (2007-2009), the euro ...

IW

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Stability instead of government overreach
Jürgen Matthes IW-Policy Paper No. 1 25. February 2022

Stability instead of government overreach

Contrary to what the German government seems to be aiming for, a reform of the Stability and Growth Pact (SGP) is necessary. The debt reduction rule forces highly indebted euro countries to reduce their debt too quickly and too damagingly for growth.

IW

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The framework companies really need for data sharing
IW-Policy Paper No. 2 16. May 2022

The Data Act: The framework companies really need for data sharing

Vera Demary

On February 23, 2022, the European Commission presented a proposal for the Data Act. This regulation is intended to regulate access to and use of data in the European Union in the future.

IW

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Evidence from voting on same-sex marriage
External Publication 10. May 2022

Rewarding conservative politicians?: Evidence from voting on same-sex marriage

Björn Kauder / Niklas Potrafke in Public Choice

We ask whether voters rewarded conservative politicians who voted in favor of same-sex marriage. The evidence is based on a rollcall vote in the German national parliament (Bundestag) in June 2017.

IW

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The Productivity Effects of Capital Formation in Germany
IW-Trends No. 2 9. May 2022

The Productivity Effects of Capital Formation in Germany

Michael Grömling

Despite broad-based digitalisation, productivity advances in Germany in recent years have been considerably lower than in previous decades. This paper conducts a growth accounting which points to steeply declining stimuli from technical progress and especially from capital formation.

IW

Read study
How big is the crisis?
IW-Report No. 19 5. May 2022

China's real estate sector: How big is the crisis?

Sonja Beer

This report analyses the rising risks in the Chinese financial market as well as the current tensions in the Chinese real estate market.

IW

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31. Mar 31. Mar
Sandra Parthie Event 31. March 2022

Zukunftsweisend oder wettbewerbsbehindernd?: Das neue EU-Lieferkettengesetz unter der Lupe

Am 23. Februar 2022 hat die Europäische Kommission ihren lang erwarteten Entwurf für eine Richtlinie über die Sorgfaltspflichten von Unternehmen im Bereich der Nachhaltigkeit, weitläufig bekannt als EU-Lieferkettengesetz, vorgestellt, der darauf abzielt, den Grundstein für ein nachhaltiges und verantwortungsvolles unternehmerisches Verhalten in allen globalen Wertschöpfungsketten zu legen.

IW

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