The evolution of the Swedish market model

Abstract

Sweden historically pioneered many aspects of a modern market economy, hosting the first known share company, the first European credit notes, and the first central bank. Anders Chydenius's booklet Den nationella vinsten (The National Gain) was printed in 1765, 11 years before Adam Smith's The Wealth of Nations. Sweden was early in extending to women the rights to pursue professions and own businesses. Today, Sweden and its Nordic neighbours evince an unusual combination of high taxes and some of the freest economies in the world. Another characteristic feature is long-standing trust, which facilitates investment and cooperation. It also allows for decentralised decision-making, a characteristic feature of Nordic business management. Sweden's unusual high-trust culture significantly affects economic activity.