Capitalism needs growth – but there is no magic formula

European countries differ not only in terms of their prosperity. Other factors, such as the ways in which their welfare state or industrial relations institutions affect the economy, differ from country to country as well. The MPIfG’s new project area, the Political Economy of Growth Models, explores how growth is generated in European varieties of capitalism. A comparison between Germany, the UK, Sweden, and Italy reveals which strategies are pursued to generate the demand needed for economic growth.