Summary
The result of this expansion was the dismal crisis of the early 1990s, when the Swedish Central Bank vainly tried to link an overvalued krona to the European Exchange Rate Mechanism and then protect it with 500 percent interest rates. The remnants of the old model - high income taxation (60.3 percent on average), the high value-added tax (25 percent), the regulated labor market, and the insufficiently reformed social-redistribution systems - are the problematic areas in the Swedish economy, not its bold vanguard.
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Extract
The New Sweden
The European Social Model is being heavily discussed in Europe. Some still laud it, but its problems are obvious, with low economic growth, an aging population coupled with "pay-as-you go" pension systems, and widespread persisting unemployment.
In Sweden we have already solved this problem; we discarded th...See the full content of this document
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