Abstract
In 1935, the world’s wealthiest countries were experiencing the worst of the economic crisis, victims of deflation and mass unemployment. Yet in Sweden, the recession had been less serious, and the recovery faster. Why? This question aroused considerable interest at the time. In the article reproduced here, Bertil Ohlin, who had written reports on the global crisis and on unemployment in Sweden – and later received the Nobel Prize for economics – analyses the reasons for the recovery in Sweden.