Includes bibliographical references (pages 215-251) and index.

Introduction : the Nordic paradox -- Good governance gone bad : the politics of overshooting in Nordic Europe -- Manufacturing a crisis : the politics of planning in Sweden -- Connecting people : the politics of innovation in Finland -- From banking on fish to fishy banks : the politics of liberalization in Iceland -- Contrasting cases : Austria, Switzerland, Greece, and Portugal -- Overshooting outside of Nordic Europe : Ireland and Estonia -- Conclusion : lessons for large states.

"Examines the rise and decline of heavy industry in postwar Sweden, the emergence and disruption of the Finnish ICT industry, and Iceland's impressive but short-lived reign as a financial powerhouse as well as ten similar and contrasting cases across Europe and North America. This book looks at the small, open economies of Nordic Europe both as paragons of good governance and as prone to economic crisis. It provides evidence that adapting flexibly to rapid, technological change and shifting patterns of economic competition may be a great virtue, but it does not prevent countries from making strikingly poor policy choices and suffering devastating results. Home to three of the "big five" financial crises in the twentieth century, Nordic Europe in the new millennium has witnessed a housing bubble in Denmark, the collapse of the Finnish ICT industry, and the Icelandic financial crisis. The dense, cohesive relationships that enable these countries to respond to crisis with radical reform render them vulnerable to policy overshooting and overinvestment"-- Provided by publisher.