2004 OECD Economic Surveys: Sweden 2004

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This 2004 edition of OECD's periodic review of Sweden's economy includes special features on living standards and the welfare state; competition and economic performance, harnessing resources more effectively, public finances, and sustainable development.

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Assessment and Recommendations

The performance of the Swedish economy during the recent international slowdown has demonstrated the value of a sound macroeconomic policy approach. After Swedish voters decided not to adopt the euro for the time being, the monetary framework continues as a well-designed inflation targeting regime. The budgetary framework has delivered solid public finances, providing room for automatic stabilisers to work during the recent global slowdown, while monetary easing helped to stabilise activity without compromising price stability. In addition, tax cuts and other discretionary policy measures have helped to underpin output...

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