Economic activity is always embedded in society. On the one hand, a functioning economy depends on social services that it cannot produce itself, such as trust, willingness to cooperate, unpaid care work, reliable legal frameworks and normative orientations.

On the other hand, every economic system has a formative effect on the society in which it is embedded. While it enables prosperity and participation, it can also deepen social inequalities and place a strain on both people and nature.

Economic structures do not follow natural laws to which humans are subject. They arise from social action and cultural practices and are therefore changeable.

Economic processes create areas of tension – between individual and collective interests, and between current decisions and future consequences.

The Political Economy research unit is dedicated to investigating these areas of tension.