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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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How to Unlock the WTO Blockage and Why China Holds the Key
Jürgen Matthes in CESifo Forum External Publication 30. April 2021

How to Unlock the WTO Blockage and Why China Holds the Key

The WTO has been getting into an ever-deeper crisis in recent years, even though it had been a success story at its outset in 1995 and for several years afterward, IW expert Jürgen Matthes lines out.

IW

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The Impact of the Corona Pandemic Compared with Earlier Economic Crises
Hubertus Bardt / Michael Grömling IW-Trends 20. April 2021

The Impact of the Corona Pandemic Compared with Earlier Economic Crises

The current economic crisis has become a crisis of consumption and has taken on more extreme dimensions than that caused by the global financial market upheavals of 2008/2009. In the 15 years preceding the outbreak of the Corona pandemic in Germany, private ...

IW

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Competitive Pressure and Market Distortions by China
Jürgen Matthes IW-Report No. 10 30. March 2021

Competitive Pressure and Market Distortions by China

The combination of China's size, the increasing competitive pressure from China, its rapid technological catch-up and the competitive distortions of state capitalism could threaten prosperity in Germany. Therefore, it is important to assess the extent of ...

IW

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Pandemic Sends a Divided Economy on a Rollercoaster Ride
IW-Forschungsgruppe Gesamtwirtschaftliche Analysen und Konjunktur IW-Trends No. 1 24. March 2021

IW Economic Forecast Spring 2021: Pandemic Sends a Divided Economy on a Rollercoaster Ride

The German economy is divided on both the supply and demand sides. Consumption and parts of the service economy are again experiencing sharp falls while exports and some industrial sectors are benefiting from a worldwide economic recovery.

IW

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How the EU can achieve the 2030 climate targets in the road transport and building heat sectors
IW-Policy Paper No. 13 14. July 2021

How the EU can achieve the 2030 climate targets in the road transport and building heat sectors

Roland Kube / Finn Wendland

o implement the European Green Deal, the European Commission is planning a comprehensive renewal of European climate protection instruments in July 2021. This study sheds light on the planned realignment of the climate policy guiding instruments.

IW

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23. Jun 23. Jun
Sandra Parthie Event 23. June 2021

livestream debate (via Zoom): Corporate finance – How to steer the transformation after the Covid crisis?

While the precise impact varies from sector to sector, the Coronavirus generally has left a strong mark on the European economy. A broad policy response has alleviated the repercussions on European SMEs and corporates, albeit to a limited extent. Importantly, policymakers have already phased out some temporary support measures and will likely continue to do so in the near to medium term.

IW

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8. Jun 8. Jun
Sandra Parthie Event 8. June 2021

Online Event: Tackling supply chain management – the EU Due Diligence & Corporate Sustainability Reporting Directives

Moving beyond voluntary measures, the laws would require companies to scrutinize their own social and environmental impact all over the world, and to identify, prevent and remedy any harm to human rights or the environment their operations may cause.

IW

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Modernization through investment
IW-Report No. 22 4. June 2021

Modernization through investment

Hubertus Bardt / Michael Hüther / Hans-Peter Klös

The German economy is facing extensive modernization challenges that have to be overcome with new technologies, new business models and the necessary investments.

IW

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Cost-benefit considerations of lockdowns – what are we missing?
IW-Kurzbericht No. 33 29. May 2021

Cost-benefit considerations of lockdowns – what are we missing?

Thomas Obst / Dan Schläger

A cross-country comparison shows similar behavioural adaptations of individuals despite different degrees of stringency of the respective lockdown in place. In Germany, during the first lockdown in spring 2020 mobility fell by 45 percent, while in Sweden it also decreased by 27 percent during the same period. A comprehensive cost-benefit analysis is crucial to better evaluate the efficacy of lockdowns and implied trade-offs.

IW

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