ABSTRACT
This chapter argues that the institutionalization of Swedish economic history was shaped by the political and economic development of Sweden in the period 1920– 50. Swedish economic history was built around a core narrative that supported the identity of Sweden as an industrialized nation and a welfare society. Analysing Arthur Montgomery narrative, it is evident that the prime driving force behind social peace is economic development. The chapter discusses the Joseph Schumpeter argument that has been launched by Lennart Schon, and that has now begun to take on the character of the standard analysis of Swedish economic development over time. It analyses the foundation of a scientific discipline and how it came to occupy a certain space in the disciplinary structure as an independent discipline with a definite contribution to a body of knowledge that was in demand; that was asked for and filled a purpose in society.
