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Formalizing a new approach to economic policy - Bent Hansen, Gösta Rehn and the Swedish model

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Author Info

  • Erixon, Lennart

    ()
    (Dept. of Economics, Stockholm University)

Abstract

In the early postwar years, two trade-union economists, Gösta Rehn and Rudolf Meidner, presented a Swedish alternative to Keynesianism. The so-called Rehn- Meidner model recommends restrictive macroeconomic policies, labor market policy programs and solidarity wages to combine price stability with economic growth, equity and full employment. In the 1950s, Bent Hansen evaluated the effects of the Rehn-Meidner policy and the validity of its underpinning theory. Hansen’s rigor analysis shall not conceal that, even together with Rehn, he was unable to shed light on the positive relationship between average profits and labor scarcity in the Rehn-Meidner model or all relations between its policy means.

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Bibliographic Info

Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2011:20.

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Length: 60 pages
Date of creation: 05 May 2011
Date of revision:
Handle: RePEc:hhs:sunrpe:2011_0020

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Web page: http://www.ne.su.se/
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Keywords: Swedish model; Rehn-Meidner model; unemployment; inflation; wage policy of solidarity;

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