A scientific explanation of the decline of the so admired Swedish Model, the Social Democratic Welfare state with high taxes and a ever increasing public sector that relies on Keynesian stimulus that leads to a viscous circle of high government debt that has to be managed by using high inflation as well as continuous devaluations of the currency to keep of international competitiveness.
What begs the question is why president Obama wants to emulate a failed model?
“Economic Growth and the Swedish Model”
Magnus Henrekson, Lars Jonung, Joakim Stymne 2004
Introduction
Abstract: We examine the growth performance of Sweden in the
post-World War II period, focusing on explaining the relative
decline of economic growth in Sweden since the early 1970s. The
hypothesis that the relative decline is a consequence of productivity
catch-up is rejected. A number of potential ”ultimate” causes behind
the slowdown are explored. An…
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Utopia, you are standing in it! 
Aug 28, 2015 @ 15:04:57
I do not recall a liquidity trap in Sweden post war.
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