Swedish Economic Development - Spiel 7
United States altered from for being an IMPORTER of capital for an EXPORTER
First half of the 1920s was wanting to produce Germany shell out. Germany's level of resistance resulted in excitable inflation in Deutschland. USA's solution � The Dawes plan(1924) loans to financial the the german language reparations; sent thru int finance sites (kreuger) In Sweden, Kreuger borrowed money directly from stock market
European govts deeply indebt.
** initially half of the 1920s was wishing to make Philippines pay. Germany's resistance led to hyper pumpiing in Deutschland
The Great Major depression
Stock exchange fell from 200 – 35
Fall in px of farming products and unprocessed trash
Result� This triggered protectionism
Community trade chop down by fifty percent from 1929 to 1932
The smoot-harley triff (June 1930)
Credit –anstaly (Austria) 1931� resulted in a large number of eastern european countries defaulting as a result of old connections to the Hapsburgs; The Greuger affair (Sweden) 1932
Sweden in the 1930s
Unemployment in Sweden was less but not affected so greatly.
How come wasn't Sweden so severly hurt by Great dep?
She was a late comer and hence less deeply associated with coal-steel complicated as many additional countries
Swedish industrialization was depending on the GPTs of the second industrialization
Sweden was more linked to tecg through the second extremes revolution � diminishing results?? huh
Essentially latecomer � even more involved in second industralisation � industries certainly not that affected
For what reason did Laxa, sweden recover relatively quickly?
Expansive Monetary policy
Keynesian idea was introduced � the Keynesian notion of INJECTIONS � Subsidies fror the arcadian sector.
Diff between Keynesian and neoclassic � if we increase the cash � more resources will be available.
Expansive budgetary Policy
Sweden followed Britain off the gold standard in 1931 = depreciation from the krona
** KRONA was also undervalued
Why would these policy not result in inflation then? Because of.. 1 ) Flexibility of labour
2 . Favourable work market organization � Frontrunners of the control unions stagnated demands pertaining to higher salary � wages were held back and increased expense Notes
After the depreciation from the krona continued to be undervalued, (Good institution keeping it undervalued and stepping off the gold standard)
Swedish firms had been competitive in foreign and domestic market segments
Demand for Swedish foreign trade was value elastic (aha! Exchange level trumps it) = increase in export amount Iron ore and steel (Germany)
Pulp and conventional paper (GB)
Baby boom inside the 1910s
Household formation boosted demand
Urbanisation shows a circulation of work from subsistience to salary related ( money to spend)
New expansion blocks and new production
Strategy related to infrastructure development depending on GPTs in the second Indus revolution Internal combustion � Locomotive
Little electric engine � for example. In Swedish railways
Transport network was developed
Fordism and devices of subcontracting was as well prevelant
Development of the electricity block
The interwar period
The south and north were connected right into a national distribution period (South had a above demand/ north had a oversupply) The increase use of Single motor (unit drive) in remarkably mechanized industries � rates fell about 1940s Electrification of railways
Electrification of the people (single electric motor in home appliances)ie. Washing machines.
Transformation 1935 – 1955
Institutional modify – development of the Swedish model
Elements: Condition; capital; labour
Big govt big capital big union
The interpersonal democrats in govt 1932 – 1976
" the strong economy”
Macro economical management
Factor marketplace management
Labour market institutions
Capital development: administered low interest rate and capital marketplace regulation Stabilisation...