In the 1950s and 1960s Sweden won worldwide plaudits for its efforts to gain economic equality for its citizens by offering a more rational and humane form of capitalism than more market-driven economies. But by the 1990s something had gone drastically wrong - the economy had plunged, tarnishing Sweden's position as a role model for other countries. Once viewed as an attractive capitalist system, Sweden's economy is now in transition and in trouble.

How serious are Sweden's economic troubles? Have critics exaggerated the nation's long-term economic problems or misinterpreted their causes? What reforms in the welfare state and its accompanying economic institutions might help restore Sweden's economic health? Ten American economists, working in tandem with Swedish economists, address these and other questions in this timely and forward-looking volume.