Trying to understand the evolution of the economic theories underlying 
Swedish social democracy is no easy task. There is not only a dearth of 
English-language material but in Swedish as well. In “Seven Figures in 
the History of Swedish Economic Thought”, a specialized text on some of 
the leading economists associated with the “Swedish model”, author Mats 
Lundahl refers to their output as “unknown” or “forgotten”.

If the “Chicago School” summons up images of Milton Friedman consulting 
with Pinochet, what does the “Stockholm School of Economics” evoke? 
Founded in 1909 as a business school largely from donations by Knut 
Wallenberg, it was intended to churn out experts who could help Sweden 
modernize its economy and develop international trade. The Wallenbergs 
were the Rockefellers of Sweden and well equipped to shape the doctrines 
that would govern the nation’s future. As it turns out, the Rockefeller 
Foundation had considerable interest in Sweden’s politics as well, 
donating large sums to set up a Social Science think-tank under the 
jurisdiction of the University of Stockholm and that would study the 
impact of wage levels in the labor market among other things. Among the 
earliest benefactors of Rockefeller funding was Gunnar Myrdal, a 
Stockholm School graduate, who would later on be referred to the 
Carnegie Foundation for the funding he needed to write “American 
Dilemma”, widely considered a seminal work on civil rights.

So how did Sweden’s social democracy get hooked up with a business 
school funded by Sweden’s most powerful capitalist dynasty?

full: 
http://louisproyect.org/2015/09/25/the-economic-theory-and-policies-of-swedish-social-democracy/
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