| Abstract: | This paper analyses the performance of one of the most controversialof recent economic policy experiments, namelySwedish Wage-earner Funds (WEFs). It examines the ability ofthe WEFs to meet macroeconomic, financial and democratic objectives.The analysis indicates a favourable financial performance, butlittle significant democratisation. Macroeconomic influencewas constrained by the limited size of the scheme and, thoughassociated with positive changes in economic variables, theexperiment was ultimately overwhelmed by the collapse of anasset price bubble. Nevertheless, the performanceof the WEFs has legitimised the concept of collective investmentfunds as an economic policy instrument. |
