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A social innovation or a product of its time? The Rehn-Meidner model's relation to contemporary economics and the Stockholm school

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  • Lennart Erixon

Abstract

A wage and economic-policy programme for full employment, price stability, growth and equity was developed by two Swedish trade-union economists in the early post-war period. A restrictive macroeconomic policy, a wages policy of solidarity and an active labour-market policy are the cornerstones of the Rehn-Meidner model. The model was influenced by Hans Singer's analysis of the fallacies of incomes policy under full employment conditions. However, it is difficult to find equivalences in contemporary economics to the model's combination of policy goals and instruments, its proposed relation between the instruments, or to its emphasis on the role of actual profits in wage formation.

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Article provided by Taylor & Francis Journals in its journal The European Journal of the History of Economic Thought.

Volume (Year): 18 (2011)
Issue (Month): 1 ()
Pages: 85-123

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Handle: RePEc:taf:eujhet:v:18:y:2011:i:1:p:85-123

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Keywords: Rehn-Meidner model; Swedish model; Stockholm school of economics; labour-market policy; wages policy of solidarity;

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  1. Lundberg, Erik, 1972. "Productivity and Structural Change-A Policy Issue in Sweden," Economic Journal, Royal Economic Society, vol. 82(325), pages 465-85, Supplemen.
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