During the twentieth century, Sweden experienced a very ambitious experiments by creating a large welfare state. Sweden is often cited as a model of how to deal with financial and economic crisis after it had to go through a recovery from a banking crisis in the mid-1990s. The Swedish economic model illustrates perhaps the most ambitious and publicized effort by a capitalist market economy to develop a substantial active welfare state. This book is about Sweden's recovery from crisis and the role that the country's welfare state institutions and policy reforms played in that recovery. The chapters in this book examine changes in the labor market, tax and benefit policies, local government policy, and industrial structure and how international trade affected Sweden's recovery. The analyses clarify the trade-offs between the egalitarian outcomes that Sweden seeks and economic efficiency.
Keywords: Sweden, welfare state, capitalism, labor market, economy, financial crisis, economic crisis