The Economist notes that unlike much of the rest of Europe, Sweden is roaring ahead. Sweden learned a lot from its banking bust in the early 1990s. Budgetary rules and bank supervision were strengthened, helping to avert the risk of another bubble. Tight fiscal policy has pushed the public sector’s share of GDP down to only just over 50%. Without dumping the generous Swedish social model, the government has tweaked it in the direction of lower taxes and smaller welfare benefits. The results have been spectacular. After long being a case study in jobless growth (except in the bloated public sector), Sweden has become a big creator of private-sector jobs.
The Economist: The Swedish Economy
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