VWL

VWL, short for Volkswirtschaftslehre, is the branch of economics taught in German-speaking universities. It studies how societies allocate scarce resources to produce goods and services and how income and welfare are distributed. VWL covers microeconomics, which examines the decisions of households and firms; macroeconomics, which analyzes the performance of economies as a whole; and related fields such as international economics and econometrics that apply statistical methods to economic data.

Methodologically, VWL combines theoretical modeling with empirical analysis. It uses mathematical tools to derive insights and relies on data and econometric techniques to test hypotheses and estimate policy effects. Core topics include supply and demand, market equilibrium, production costs, and market structure; market failures and government intervention; macro indicators like GDP, inflation, and unemployment; and policy instruments such as taxation, fiscal and monetary policy, trade policy, and regulation.

VWL is distinct from Betriebswirtschaftslehre (BWL), the study of business administration focused on firms and management. In practice, VWL informs public policy, economic forecasting, and research in government agencies, international organizations, and academia, as well as roles in consulting and finance. The field continues to adapt to contemporary challenges such as globalization, technological change, climate economics, and development issues.