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Swedish Lessons for Post-Socialist Countries

Sweden experienced exeptionally fast economic growth during the century-long period 1870-1970. This illustrates that a decentralized market economy, highly open to international transactions, may be quite conductive to sustained productivity growth if the government fulfills its "classical" functions well. The subsequent period of centralization and large government, 1970-1985/90, was characterized by considerable social achievements. But the rate of economic growth was quite low as compared to other developed countries. The last period discussed in the paper, after about 1985/90, may be characterized as a "period of transition" away from the centralized and highly interventionistic system of the 1970s and 1980s. A number of transition problems are discussed in the paper.

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 498.

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Length: 37 pages
Date of creation: 08 Jun 1998
Date of revision:
Handle: RePEc:hhs:iuiwop:0498
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Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden

Phone: +46 8 665 4500
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  1. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766, December.
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  12. Kornai, J. & Ely, R.T., 1992. "The Postsocialist Transition and the State: Reflections in the Light of Hungarian Fiscal Problems," Harvard Institute of Economic Research Working Papers 1583, Harvard - Institute of Economic Research.
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  15. Persson, Mats & Persson, Torsten & Svensson, Lars E O, 1996. "Debt, Cash Flow and Inflation Incentives: A Swedish Example," CEPR Discussion Papers 1488, C.E.P.R. Discussion Papers.
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  19. Svensson, Lars E. O., 2000. "Open-economy inflation targeting," Journal of International Economics, Elsevier, vol. 50(1), pages 155-183, February.
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  22. Anderson, James E., 1997. "Revenue Neutral Trade Reform with Many Households, Quotas and Tariffs," Seminar Papers 626, Stockholm University, Institute for International Economic Studies.
  23. Hassler, John & Lindbeck, Assar, 1997. "Intergenerational Risk Sharing, Stability and Optimality of Alternative Pension Systems," Working Paper Series 493, Research Institute of Industrial Economics.
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  25. Kornai, Janos, 1986. "The Hungarian Reform Process: Visions, Hopes, and Reality," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1687-1737, December.
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