Social democracy in open economies: a reply to Jonathon Moses

Jonathon Moses's arguments in 'Abdication from National Policy Autonomy: What's Left to Leave?' are inadequate to dismiss the points made in the article 'The Abdication from National Policy Autonomy.' They are inadequate to support his claims about capital mobility and internally inconsistent, nor are his descriptions of Swedish and Norwegian policies accurate. The essential problem facing Scandinavia's social democrats was to maintain both price stability and full employment despite institutional failings, not outside pressures with which their tools could not cope.