Abstract
ABSTRACT This paper describes the main details of the Swedish economic model, which began to be structured on the 1930s and achieved its consolidation on the 1950s. The Swedish model is characterized by a macroeconomic policy which provides price stability, fiscal results for selective industrial policies and social active policies, the latter being recognized as a wide universal welfare state. This combination, which contradicts the traditional economic prescriptions, has been successful given the country was agrarian and underdeveloped until the beginni.ng of 20th century and achieved a high social-economic development level on the 1970s. Afterwards, we present the Swedish experiment as an alternative to macroeconomic management, especially due to its uniqueness.
Highlights
Sweden was a poor and agrarian country until the late 19th century
Whyman (2003) points out that the socio-economic performance of Sweden throughout the 20th century calls the attention of economists, because it is a mix of a capitalist and open economy with an active social policy characterized by a large universal welfare state
The Swedish economic development derives from the introduction of a set of socio-economic policies promoted by the State, since the mid-1930s, with the rise of the Social Democratic Party (SDP) to power
Summary
Sweden was a poor and agrarian country until the late 19th century. during the 20th century, it showed a fast socioeconomic development, which has its foundations in the industrial consolidation of the country through large companies, especially the ones related to metal and mechanical engineering. The country had a high unemployment rate and the State began to review some points of its economic policy, including a strong fiscal adjustment and a reduction in public employment, which were later relieved. Third section presents the indicators of the country’s economy, with emphasis on the period after the 1990s crisis, emphasizing the rates of economic growth, inflation, fiscal balance, public employment and unemployment. In this context, we point the elements of the Swedish model still present in the post-crisis economic policy.
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