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The case for the Swedish wage-earner funds: a Post Keynesian solution to the dynamic inefficiency of capitalism through the socialization of investment


  • Philip Whyman


Swedish wage-earner funds (WEFs) represented a distinctive form of socialization of investment intended to counter the dynamic inefficiency of capitalism and facilitate Post Keynesian economic policy. This paper reviews the theoretical arguments for the socialization of investment, before evaluating its performance. It found that WEFs performed creditably in relation to financial targets, but less effectively regarding democratic objectives, while macroeconomic influence was ultimately constrained by the limited size of the scheme and shocks arising from financial deregulation. The paper concludes that WEFs have, however imperfectly, contributed toward the legitimization of the concept of collective investment funds as an economic policy instrument.

Suggested Citation

  • Philip Whyman, 2007. "The case for the Swedish wage-earner funds: a Post Keynesian solution to the dynamic inefficiency of capitalism through the socialization of investment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 30(2), pages 227-258.
  • Handle: RePEc:mes:postke:v:30:y:2007:i:2:p:227-258
    DOI: 10.2753/PKE0160-3477300205

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    References listed on IDEAS

    1. Rod O'Donnell, 1992. "The Unwritten Books and Papers of J. M. Keynes," History of Political Economy, Duke University Press, vol. 24(4), pages 767-817, Winter.
    2. Dudley Dillard, 1984. "Keynes and Marx: A Centennial Appraisal," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 6(3), pages 421-432, April.
    3. F. H. Hahn, 1951. "The Share Of Wages In The National Income," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 147-157.
    4. Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-115, March.
    5. H. Vandenborre, 1958. "An Integration Of Employment Economics Within The Keynesian Theory Of Money Flows," Oxford Economic Papers, Oxford University Press, vol. 10(2), pages 205-219.
    6. Victoria Chick, 1983. "Macroeconomics after Keynes: A Reconsideration of the General Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530457, January.
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