Book contents
- Frontmatter
- Dedication
- Contents
- Preface
- List of Contributors
- Dramatis Personae at the end of 1937
- Introduction and Summary
- Part I The roots
- Part II The approach of the Stockholm School
- 4 Expectation and plan: The microeconomics of the Stockholm School
- 5 Sequence analysis and optimization
- 6 There were two Stockholm Schools
- 7 On formal dynamics: From Lundberg to chaos analysis
- 8 Lundberg, Keynes, and the riddles of a general theory
- 9 Macrodynamics and the Stockholm School
- 10 Ohlin and the General Theory
- 11 The monetary economics of the Stockholm School
- 12 The Austrians and the Stockholm School: Two failures in the development of modern macroeconomics?
- 13 The political arithmetics of the Stockholm School
- 14 After the Stockholm School
- Part III The impact of the Stockholm School
- Part IV What remains of the Stockholm School?
- The Stockholm School: A non-Swedish bibliography
13 - The political arithmetics of the Stockholm School
Published online by Cambridge University Press: 05 July 2013
- Frontmatter
- Dedication
- Contents
- Preface
- List of Contributors
- Dramatis Personae at the end of 1937
- Introduction and Summary
- Part I The roots
- Part II The approach of the Stockholm School
- 4 Expectation and plan: The microeconomics of the Stockholm School
- 5 Sequence analysis and optimization
- 6 There were two Stockholm Schools
- 7 On formal dynamics: From Lundberg to chaos analysis
- 8 Lundberg, Keynes, and the riddles of a general theory
- 9 Macrodynamics and the Stockholm School
- 10 Ohlin and the General Theory
- 11 The monetary economics of the Stockholm School
- 12 The Austrians and the Stockholm School: Two failures in the development of modern macroeconomics?
- 13 The political arithmetics of the Stockholm School
- 14 After the Stockholm School
- Part III The impact of the Stockholm School
- Part IV What remains of the Stockholm School?
- The Stockholm School: A non-Swedish bibliography
Summary
Outside Britain the most interesting development in the analysis of fiscal policy was in Sweden, where a group of young economists (especially E. Lindahl and G. Myrdal) brought up in the general or macro-economic approach by their teacher, Knut Wicksell, were groping for a comprehensive and rational policy of compensatory finance. The Swedish contribution was notable for emphasizing from an early stage … the need to gear the system of public accounting and the arrangement of the budget so as to make it appropriate for the additional responsibilities of fiscal policy.…
The first country to manifest any interest in the economic classification of the budget was Sweden, which established a fairly comprehensive reorganization of the budgetary structure on a current/capital basis in 1938.
(Ursula Hicks, 1947, pp. 272 and 339; italics added).Bertil Ohlin's celebrated article in the Economic Journal (Ohlin, 1937) ushered into the Anglo-Saxon world the now familiar concepts by which all and sundry refer to the Stockholm School: dynamic method, disequilibrium dynamics, temporary equilibrium, ex ante versus ex post, process analysis, liquidity preference versus loanable funds, and so on. Section B of part I of Ohlin's paper, where the above much-maligned concepts were elegantly introduced, has attained the status of a classic: much quoted, seldom read. Ohlin, in one respect at least, presented the fundamental, unifying theme of Swedish economics extending from Davidson, Wicksell, and Cassel to Lindahl and Myrdal: the necessity of starting from feasible and useful accounting conventions.
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- The Stockholm School of Economics Revisited , pp. 333 - 345Publisher: Cambridge University PressPrint publication year: 1991
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