The research of the IMK staff focuses on the following four research areas:

Business cycle analysis and forecasting

As an economic research institute with a strong focus on the business cycle, the IMK studies short and medium-term economic developments in Germany and the world. A systematic preparation and evaluation of economic indicators forms the empirical basis for the forecasts, complemented by econometric model simulations. Once a year the IMK publishes its own business cycle forecast, which is continually updated.

Economic policy analysis
This research area focuses on current topics of monetary and fiscal policy as well as employment policy. In addition to monitoring day-to-day macroeconomic policy, special topics are analysed such as the German fiscal "debt brake", and how wages and labour market policies affect domestic demand.

Labour markets, income and its distribution in a globalized world
Until the world economic crisis Germany strongly profited from global growth and increasing international trade linkages, partially due to a slow increase in unit labour costs. The flip side of this development was low wage growth, strongly growing profit shares, and weak domestic demand. In this research area the relations between wage developments, labour market performance, and growth in a globalized world economy are investigated.

Challenges for Macroeconomics and Economic Policy after the Crisis
In the face of the global financial and economic crisis starting in 2007 many "conventional wisdoms" in macroeconomics have been challenged. The crisis reveals fundamental problems both within standard macroeconomic theory and with economic policies at the national and international levels. The IMK is interested in alternative approaches to macroeconomic theory and in possibilities of a renewal of macroeconomic policy beyond short-term crisis management.