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Financialisation and the New Swedish Model
[Ownership and control in Sweden: strong owners, weak minorities and social control]

Author

Listed:
  • Claes Belfrage
  • Markus Kallifatides

Abstract

Most studies of Swedish political economy are too optimistic about the condition and prospects of the reformed Swedish model (e.g. Bergh, 2014; Steinmo, 2010). Indeed, the Swedish economy has responded to the global financial crisis (GFC) in what appears to be a successful manner. This comparativist literature nevertheless omits in-depth analysis of the impact of financialisation, partly due to its neglect of long-term, dialectical processes of change (cf. Ogden et al., 2014). There is a small literature on financialisation in Sweden (e.g. Belfrage, 2008; Forslund, 2008; Kallifatides et al., 2010; Ryner, 2013; Belfrage, 2015; Andersson and Jonung, 2015; Kallifatides, 2016). However, it has not clarified what the dynamics, contradictions and crisis-tendencies of the resulting finance-dominated accumulation regime in Sweden are. Drawing on document analysis and statistics, and based on Regulation Theory (e.g. Aglietta, 1979), this paper does just that. It thus corrects an overly idealised picture of Swedish economy and society, as well as, more broadly, holding the Swedish case up as a critical case study for the sustainability of the finance-dominated growth regime in Europe. We argue that there is a looming crisis in the Swedish economy today, as the acceleration of financialisation following the GFC is shifting the economy away from being export-led to becoming debt-led and asset-based, and thus moving the economy closer to the UK and US economies. As such, the Swedish case suggests that the finance-dominated growth regime may be unsustainable in Europe more generally.

Suggested Citation

  • Claes Belfrage & Markus Kallifatides, 2018. "Financialisation and the New Swedish Model [Ownership and control in Sweden: strong owners, weak minorities and social control]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(4), pages 875-900.
  • Handle: RePEc:oup:cambje:v:42:y:2018:i:4:p:875-900.
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    References listed on IDEAS

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    1. Bruno Amable, 2011. "Morals and politics in the ideology of neo-liberalism," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00553001, HAL.
    2. Roger Andersson & Lena Magnusson Turner, 2014. "Segregation, gentrification, and residualisation: from public housing to market-driven housing allocation in inner city Stockholm," International Journal of Housing Policy, Taylor & Francis Journals, vol. 14(1), pages 3-29, January.
    3. Roger Andersson & Lena Magnusson Turner, 2014. "Segregation, gentrification, and residualisation: from public housing to market-driven housing allocation in inner city Stockholm," European Journal of Housing Policy, Taylor and Francis Journals, vol. 14(1), pages 3-29, January.
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    Cited by:

    1. Bengtsson, Erik, 2023. "The politics of profits: Profit squeeze and political-economic change in Sweden, 1975–1985," Lund Papers in Economic History 250, Lund University, Department of Economic History.
    2. Buendía, Luis & Barredo, Juan & Balay, Juan, 2022. "Foreign sector and welfare state in Sweden: From complementarity to tensions," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 310-319.
    3. Engelbert Stockhammer & Erik Bengtsson, 2020. "Financial effects in historic consumption and investment functions," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(3), pages 304-326, May.
    4. Viktor Skyrman, 2023. "An Antidote for Securitization? How Covered Bonds Fuel Household Indebtedness in Sweden’s Financialized Growth Model," Working Papers PKWP2314, Post Keynesian Economics Society (PKES).
    5. Chwieroth, Jeffrey M. & Walter, Andrew, 2019. "The financialization of mass wealth, banking crises and politics over the long run," LSE Research Online Documents on Economics 100765, London School of Economics and Political Science, LSE Library.

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