The Government of the Kingdom of Sweden (Swedish: Regeringen) is the supreme executive authority of Sweden. It consists of the Prime Minister, appointed by the Riksdag, and cabinet ministers appointed by the Prime Minister. The Government is responsible for its actions to the Riksdag (Parliamentary system). Following the adoption of the 1974 Instrument of Government on January 1 1975, the Swedish Monarch (King Carl XVI Gustaf since September 15 1973) is no longer vested any executive authority at all, and is neither part of the executive branch nor of the legislature.

Sweden (ⁱ/ˈswiːdən/ SWEE-dən; Swedish: Sverige [ˈsværjɛ] ( listen)), officially the Kingdom of Sweden (Swedish:  Konungariket Sverige (help·info)), is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland, and is connected to Denmark by a bridge-tunnel across the Øresund.

At 450,295 square kilometres (173,860 sq mi), Sweden is the third largest country in the European Union by area, with a total population of about 9.4 million. Sweden has a low population density of 21 inhabitants per square kilometre (54 /sq mi) with the population mostly concentrated to the southern half of the country. About 85% of the population live in urban areas. Sweden's capital city is Stockholm, which is also the largest city.

Sweden emerged as an independent and unified country during the Middle Ages. In the 17th century, the country expanded its territories to form the Swedish Empire. The empire grew to be one of the great powers of Europe in the 17th and early 18th century. Most of the conquered territories outside the Scandinavian Peninsula were lost during the 18th and 19th centuries. The eastern half of Sweden, present-day Finland, was lost to Russia in 1809. The last war in which Sweden was directly involved was in 1814, when Sweden by military means forced Norway into a personal union. Since then, Sweden has been at peace, practicing "non-participation in military alliances during peacetime and neutrality during wartime". However, Sweden has been a member of the European Union since 1 January 1995 and is a member of the OECD.

Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist, statistician, and author who taught at the University of Chicago for more than three decades. He was a recipient of the Nobel Memorial Prize in Economic Sciences, and is known for his research on consumption analysis, monetary history and theory, and the complexity of stabilization policy. As a leader of the Chicago school of economics, he influenced the research agenda of the economics profession. A survey of economists ranked Friedman as the second most popular economist of the twentieth century behind John Maynard Keynes, and The Economist described him as "the most influential economist of the second half of the 20th century…possibly of all of it."

Friedman's challenges to what he later called "naive Keynesian" (as opposed to New Keynesian) theory began with his 1950s reinterpretation of the consumption function, and he became the main advocate opposing activist Keynesian government policies. In the late 1960s he described his own approach (along with all of mainstream economics) as using "Keynesian language and apparatus" yet rejecting its "initial" conclusions. During the 1960s he promoted an alternative macroeconomic policy known as "monetarism". He theorized there existed a "natural" rate of unemployment, and argued that governments could increase employment above this rate (e.g., by increasing aggregate demand) only at the risk of causing inflation to accelerate. He argued that the Phillips curve was not stable and predicted what would come to be known as stagflation. Friedman argued that, given the existence of the Federal Reserve, a constant small expansion of the money supply was the only wise policy.