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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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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 composition of means and goals, functional relationships or to its emphasis on the role of actual profits in wage formation.

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  • Erixon, Lennart, 2008. "A Social Innovation or a Product of Its Time? The Rehn-Meidner Model’s Relation to Contemporary Economics and the Stockholm School," Research Papers in Economics 2008:8, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2008_0008
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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 465-485, Supplemen.
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    Cited by:

    1. Erixon, Lennart, 2018. "The Stockholm School in a New Age – Erik Lundberg and the Swedish Model," Research Papers in Economics 2018:4, Stockholm University, Department of Economics.

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    1. Erixon, Lennart, 2018. "The Stockholm School in a New Age – Erik Lundberg and the Swedish Model," Research Papers in Economics 2018:4, Stockholm University, Department of Economics.

    More about this item

    Keywords

    Rehn-Meidner model; Swedish model; Stockholm school of economics; labour market policy; wages policy of solidarity;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B29 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Other
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects

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