The economic policy of the Swedish Social Democrats has undergone major changes during the last thirty years. From using a so-called Keynesian policy to promote full employment in the economy, the Social Democrats have switched to a more monetaristic policy to promote low inflation instead. What I intend to do with this study is to see if the policy change also can be noticed in how the party describe their own policy. Have the Social Democrats been open and transparent with their change in priorities, or have they tried to hide this in their rhetoric?The purpose of this thesis is to examine if one can notice a change from a Keynesian to a monetaristic policy in the Social Democrat?s descriptions of their economic policy.

Denna uppsats prövar empiriskt kapitalstockens och arbetsmarknadens institutioners (AMI) betydelse för arbetslösheten på kort och medellång sikt, utifrån keynesiansk och nykeynesiansk teoribildning. Uppsatsens huvudsakliga keynesianska teoretiska modell utgår ifrån antaganden om att arbetslösheten uppvisar hysteresis/persistens samt att NAIRU bestäms endogent, till exempel utifrån ett antagande om att lönebildningen präglas av ömsesidighet. Phillipskurvan antas vara långsiktigt icke-vertikal. Datamaterialet täcker som mest åren 1960-2010 samt 19 OECD-länder och analyseras bland annat genom OLS, panelkorrigerade standardfel, fixa effekter m.m. Den empiriska analysen indikerar att det finns ett statistiskt signifikant negativt samband mellan reala nettokapitalstockens tillväxttakt och arbetslöshet.

This papers? objective is to examine the effects that labour market institutions (LMI) have on the unemployment in the short- and the medium run throughout the new Keynesian NAIRU theory, but also to make a comparison with the postkeynesian capital stocks? effect on the unemployment. Thus, it is this papers? main objective to study the economic effects that LMI, capital accumulation and varied macroeconomic shocks might have on unemployment. The paper uses econometric regression models as a methodological benchmark in order to estimate each independent variable?s level of significance and to approximate the effect each have on the dependent variable.