What lessons does the current economic crisis in Sweden offer for other economies? Written in a clear and precise style, and using modern theories of macroeconomics and economic policy to analyze Sweden's serious economic situation, Turning Sweden Around outlines recommendations for change that are both unusual and provocative. Combining economic and political analysis, it covers wide-ranging areas and broad structural issues that encompass the necessity for institutional reforms as well as economic change.
The authors identify the deficiencies of Sweden's economic and political institutions, and suggest remedies that cut across virtually all aspects of economic and political life: product and factor markets, the system of wage formation, the public sector, and central and local government. They show that many of the current problems stem from an unclear division of responsibilities, describing a government that has taken on so many tasks that it is unable to fulfill its core obligations. Three chapters tackle the basic problems in the Swedish economy - stability, efficiency, and growth - while a fourth chapter suggests how to change the political system to strengthen democracy.
241 p. ISBN 0-262-12181-6
The MIT Press, Cambridge, Massachusetts 1994.
Translation of Nya villkor för ekonomi och politik SOU 1993:16.