The sass United States shifted from being an IMPORTER of capital to an EXPORTER First half of the sass was wanting to make Germany pay. Germany’s resistance resulted in hyper inflation in Deutsche. Aqua’s solution 0 The Dates plan(1924) loans to finance the German reparations; transmitted thru into finance networks (Kruger) Olin Sweden, Kruger borrowed money directly from wall street European spots deeply indebted. ** first half of the sass was wanting to make Germany pay. Germany’s resistance resulted in hyper inflation in Deutsche
The Great Depression Stock market fell from 200 – 35 Fall in pix of agricultural products and raw materials Results This triggered protectionism World trade fell by 50% from 1929 to 1932 The smooth-Harley tariff Noun 1930) Financial Crises Credit -install (Austria) 1931 resulted in many eastern European countries defaulting due to the old ties to the Hapsburg; The Grudger affair (Sweden) 1932 Sweden in the Great Depression Unemployment in Sweden was less and not affected so greatly. WHY ? O Why wasn’t Sweden so severely hurt by the Great deep?
She was a late comer and hence not as deeply involved in coal-steel complex as many other countries Swedish industrialization was based on the Gaps of the second industrialization Sweden was more involved in tech from the second Indus revolution 0 diminishing returns ?? Huh affected Why did Sweden recover relatively quickly? Expansive Financial policy Keynesian idea was introduced 0 the Keynesian concept of INJECTIONS 0 Subsidies for the agrarian sector. Dif between Keynesian and neoclassic 0 if we increase the money 0 more resources will be available.
Expansive monetary Policy Sweden followed Britain off the gold standard in 1931 ** AKRON was also undervalued = depreciation of the Akron Why did these policy not trigger inflation then? Because of 1 . Flexibility of labor 2. Favorable labor market institution 0 Leaders of the trade unions held back demands for higher wages 0 wages were held back and increased investment Notes http://www. Fajitas. Com/h2o/chewed. HTML After the depreciation of the Akron remained undervalued, (Good institution keeping it undervalued and stepping off the gold standard)
Swedish firms were competitive in foreign and domestic markets Demand for Swedish export was price elastic (aha! Exchange rate trumps it) = increase in export volume Iron ore and steel (Germany) Pulp and paper (B) Demographic factors Baby boom in the sass Household formation boosted demand Arbitration indicates a flow of labor from subsistence to wage related ( money to spend) Development New development blocks and new production Concept related to infrastructure development based on Gaps of the second Indus revolution Internal combustion 0 Locomotive Small electric motor 0 ‘e.
In Swedish railways Forbids and systems of subcontracting was also prevalent Development of the electricity block The interwar period The south and north were connected into a national distribution period (South had a over demand/ north had a oversupply) The increase use of Single motors (unit drive) in highly mechanized industries 0 prices fell around sass Electrification of railways Electrification of the households (single motor in household appliances)Гјii. Washing machines. Transformation 1935 – 1955 Institutional change – formation of the Swedish model Elements: State; capital; labor