Abstract and Keywords
This chapter analyzes the development of Swedish economic policy from the early 1920s to the present. The chapter has three objectives: to describe how Swedish economic policy-making has evolved over time, concentrating on a few especially important periods: the adoption of expansionary fiscal policies in the 1930s, the development of Sweden’s postwar economic model in the 1950s, the struggle to maintain full employment in the 1970s and 1980s, the financial crisis of the early 1990s, and Sweden’s response to worldwide recession in the 2000s. The second objective is to show if and when Swedish governments have pursued economic policies that set Sweden apart from other rich democracies; and the third is to examine a number of scholarly debates concerning how to explain some of the economic policy shifts that have occurred in Sweden since its transition to democracy in the 1910s.
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