The Swedish Experiment

Assar Lindbeck

Journal of Economic Literature, 1997, vol. 35, issue 3, 1273-1319

Abstract: The deterioration of the economic performance in Sweden from about 1970 was to some extent the result of a number of exogenous shocks and "unnecessary" policy mistakes. It was, however, also related to basic changes in the economic and social system in Sweden in the late 1960s and early 1970, when government spending, taxes, and regulations started to expand dramatically. It is also argued in the paper that problematic political, economic, and social mechanisms had become embedded in the long-term dynamics of the system itself. These various experiences are the background for recent reforms and retreats of "the Swedish experiment."

Date: 1997
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