Stockholm School
Part of the series where I am trying to learn more about each of the major economic schools of thought.
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The Stockholm School is a school of economic thought. It refers to a loosely organized group of Swedish economists that worked together in Stockholm, Sweden in the 1930s.
- The Stockholm School - like Keynes - came to the same conclusions in macroeconomics and the theories of demand and supply.
History and Aspects
- Two of the most prominent members of the Stockholm School were Gunnar Myrdal and Bertil Ohlin. The movement's name
The Stockholm School
was launched in a article by Bertil Ohlin in the influential Economic Journal in in 1937,Some Notes on the Stockholm Theories of Savings and Investment
- The article was published in response to Keynes's The General Theory of Employment, Interest, and Money in 1936, and its purpose was to draw international attention to Swedish discoveries in the field, many of which has predated the discoveries of Keynes.
- The Stockholm school maintained that the basic idea of adjusting the national budgets to slow or speed an economy was first developed in Sweden by him and the Stockholm School.
- This school of economic thought developed the underpinnings of the Northern European welfare state/
- Their theories achieved wide international appeal as a
Third Way
, a middle way between a market economy and a command economy. The objective of thisthird way
was to achieve a high level of social equality without undermining economic efficiency.