By Robert Geyer, Christine Ingebritsen, Jonathan W. Moses
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Extra resources for Globalization, Europeanization and the End of Scandinavian Social Democracy?
Sample text
This approach is in contrast to the more common way of posing questions about economic policy change, that is, through a comparative-statics framework. In this framework, two different value constellations along the same set of variables are compared, with a relative disregard for the process that brings the unit(s) from one steady state to another. Within this tradition, forces such as globalization and Europeanization are treated as independent variables causing shifts in societal interests (along class or sectoral lines) and/or in the systemic imperatives (such as capital mobility or binding treaties) confronted by decision-makers.
The second section deals with the 1970s, while the third section deals with the 1980s and early 1990s. In the final section I conclude. Bent Sofus Tranoy 47 The golden age models If we take a glance at the postwar historical record of macroeconomic management in Norway and Sweden, neither state gives the impression of conducting a very active fiscal policy. Sweden normally had balanced budgets or moderate deficits, while Norway made a habit of running moderate surpluses. A corollary to this lack of flexibility in fiscal policy was a more active, counter-cyclical, regulation of the volume of credit.
Moreover, a strategy of maintaining full employment, be it by means of public sector expansion or otherwise, becomes infeasible at the point where anti-inflation policies come to require higher unemployment. When confronted with the first serious postwar economic downturn in the mid-1970s, both governments initially focused on fiscal expansion. 2). In addition, the Conservative government, which took over in 1976, resorted to a policy of subsidizing ailing industries. 3). For Kjell-Olof Feldt, who took office as Finance Minister in the new Swedish Labour Party (SAP) government in 1982, it was clear that the budget deficit had to be brought down by a full-employment strategy which relied on stimulating private sector activity.