The German Economic Institute (IW) is a private economic research institute in Germany, which is a advocate of a liberal economic and social order. We work to improve understanding of how business and society function and interact.
The economic policy debate on the Covid-19 pandemic has so far focused on the real economy. There the lockdown had been direct and shocking; the stationary retail was largely cut off, hotels and restaurants were closed, national and international supply chains were disrupted, and some areas of the economy - such as the automotive industry - had temporarily completely shut down production. Banks and other financial intermediaries - e.g.