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The Rehn-Meidner Model in Sweden: Its Rise, Challenges and Survival

A Swedish economic policy was developed by two trade union economists shortly after the Second World War. The Rehn-Meidner model recommends the use of selective employment policy measures, a tight macroeconomic policy and a wage policy of solidarity to combine full employment and equity with price stability and economic growth. Although never consistently applied in Sweden, it is possible to distinguish a golden age for the Rehn-Meidner model from the late 1950s to the early 1970s. In the 1970s and 1980s, Swedish governments abandoned the restrictive macroeconomic means of the Rehn-Meidner programme and decentralised wage bargaining obstructed the wage policy of solidarity. In the 1990s and 2000s a new economic-policy regime could not meet the strong requirement of full employment in the Rehn-Meidner model but it satisfied the model’s priority of selective employment policy within the framework of a restrictive macroeconomic policy.

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Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2008:2.

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Length: 76 pages
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:hhs:sunrpe:2008_0002
Contact details of provider: Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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