The Macroeconomics of Government Business Relations: The Case of Germany and Sweden

Abstract

This chapter looks at the 'macroeconomics' of government business relations, with specific reference to the cases of Germany and Sweden. Macroeconomics here means that the analysis is conducted at a system level; that is, from the perspective of the economy as a whole rather than an individual firm, worker or taxpayer. Attention is therefore focused on the broad factors that shape the relationship between government and business, and which contribute to the determination of aggregate outcomes, such as economic growth, unemployment, inflation and the degree of income inequality in society. In these two countries, government adopts a cooperative approach by expanding its role to develop a strong relationship with business and labour.