Flag of Sweden
Location of Sweden in Northern Europe
History
The Kingdom of Sweden may have been first unified by Eric the Victorious in the 10th century, but nothing about this period is known with certainty. Sweden became part of the Kalmar Union in 1397, which consisted of the kingdoms of Norway, Denmark and Sweden. Eventually the Swedish rebelled under the lead of Gustav Vasa, who fought against the oppression of the King of Denmark and also established the Lutheran Church in Sweden. On the 6th of June 1523, Sweden became an independent kingdom again, and this is still Sweden's national holiday.
Rise and fall of the Swedish Empire (1523-1721)
After Gustav Vasa's rule Sweden emerged as a European power extending its territory across Finland and the Baltic region. Sweden was one of the victors of the Thirty Year War that ravaged the Holy Roman Empire between 1618 and 1648. In 1658 it conquered parts of Denmark-Norway that are now in southern Sweden. Sweden even established an American colony near the Delaware River, but wasn't able to keep it for long.
Territories of the Swedish Empire gained and lost between 1560 and 1721. Finland was lost in 1809. Norway was in personal union with Sweden from 1814 until 1905.
Sweden's fortunes turned when an alliance of Russia, Poland, Prussia and Denmark fought Sweden during the Great Northern War (1700-1721). Sweden lost all its overseas territory and saw its influence greatly reduced.
Early modern history (1721-1905)
Sweden lost Finland during Finnish War of 1808-1809, after which Finland became a Grand Duchy within the Russian Empire. Though limited in size and resources, Sweden joined the coalition against Napoleon and was rewarded the Kingdom of Norway. Preferring independence, the Norwegians resisted but a Swedish expedition into Norway in 1814 forced a compromise in which Norway and Sweden entered in a personal union of which Sweden would take care of common defence and foreign policy, but in which Norway became autonomous in all other areas. Norway would eventually leave the union in 1905, after a decade of imbalanced economic development and a reawakening of Norwegian identity.
The modern Swedish royal house was formed when the French general Bernadotte was elected King of Sweden in 1818. His predecessor Gustav IV had died childless.
Modern Sweden (1905-date)
Because Sweden lagged other European countries in economic development, many Swedes emigrated to the United States in the 19th century. The First World War sparked an acceleration of industrialisation, because of the high demand for Swedish iron ore and steel. With the social-democrats taking power in the 1930's, the foundations for a welfare state werw laid that would characterise post-war Sweden.
Sweden remained neutral during both world wars, but during the Second World War that neutrality was under severe German pressure because of the need for Sweden's iron ore. Germany invaded Norway in 1940 to secure the ice-free ports that could ship the ore desperately needed for its war industry. At the same time, Sweden also allowed Jews to seek refuge within its own borders. The role of Sweden during World War 2 was one of many faces and remains somewhat controversial today.
After the war Sweden developed quickly into one of the most prosperous countries in the world, while remaining strictly neutral in the Cold War. The Swedish Model of seeking compromise across stakeholders is seen as a major reason why it could develop as a modern industrialised state without the social strifes seen elsewhere. The Swedish welfare state however peaked in the 1970's, followed by stagflation and high unemployment.
Sweden hit hard times again in the early 90's, with a popping housing bubble and a currency devaluation causing a banking crisis. Reforms resulting from this period have turned Sweden again into one of the most prosperous nations in the world, although it still has challenges ahead, both socially (effects of large-scale immigration) and economically (an overheated housing market).
Sweden joined the EU in 1995 but opted out of the Euro in a referendum in 2003. Swedes are relatively Eurosceptic so it is not expected to join the Euro any time soon. Some people do not even rule out a Swedish exit from the EU now that the UK has decided to do so.
Currency
Sweden's first currency was based on the Norwegian Penning. From around 1300 until 1604, the following system was in place:
1 Daler = 4 Mark
1 Mark = 8 Öre
1 Öre = 2 Halvöre = 3 Örtugar = 24 Penning
Rigsdaler (1604-1777)
In 1604 the Daler was renamed to Riksdaler and adjusted to 6 Mark in 1609. The Riksdaler was not only minted in silver but also in large copper plates. The 10 Daler copper plate was the heaviest: 20 kg. Not surprisingly these were not considered very practical.
As copper fell in value relative to silver the ratio between the silver and copper Dalers was eventually set at 3 to 1. The shortage in silver and the impractical copper plates also caused Sweden to be one of the first countries issuing banknotes from 1661. The value of this fiat money quickly eroded. Eventually the Riksdaler was set at 3 Silver Daler in 1712.
Riksdaler Specie (1777-1855)
The Riksdaler was reorganised in 1777. It was now divided into 48 Skilling, each of 12 Rundstycken. Besides the silver Riksdaler, copper Riksdalers and banknotes were produced by banks (Riksdaler Banco) and the Debt Office (Riksdaler Riksgäld). The latter versions lost value against the silver Riksdaler such that by 1830 these were tied to Riksdaler = 2 2/3 Riksdaler Banco = 4 Riksdaler Riksgäld. As the copper coins also fell in value with Riksgäld, the Riksdaler Specie was now divided in 128 Skilling.
Riksdaler Riksmynt (1855-1873)
Sweden's currency was once again reformed in 1855. The Riksdaler Riksmynt became the new unit of account, worth 1/4 of the old Riksdaler Specie. It was decimalised into 100 Öre. At that time, the British Pound was worth 18.16 Riksdaler Riksmynt.
Swedish Krona (1873-date)
Sweden, Denmark and Norway founded the Scandinavian Monetary Union in 1873. In Sweden, the Riksdaler Riksmynt was replaced by the Krona at par, keeping its subdivision into 100 Öre. The Krona was tied to 1/2480 kilogram of gold and therefore worth 18.16 Kr/£ or 3.73 Kr/$. World War 1 resulted in a suspension of the gold standard which ended the monetary union in 1921. The Swedish Krone remained stable despite this. In 1933 it was pegged to 19.4 Kronor per Pound Sterling and in 1939 to 4.2 Kronor per US Dollar.
After the war Sweden revalued the Krona to 3.6 Kr/$. It joined Bretton Woods and followed the devaluation of Pound Sterling in 1949. Until 1971 the Krona was pegged to US Dollar at a rate of 5.17 Kr/$. The Dollar devaluation following the Nixon Shock sent the Krona up to 4.56/$, but economic difficulties in Sweden weakened the Krona in the 1980's.
The Krona was tied to the ECU in 1991 which put it at around 3.6 per Deutschmark (before 1971 this was still 1.28 Kr/DM). In 1992 the Krona collapsed by 20% as a result of a banking crisis and became a free floating currency. It had a another round of instability during the Global Financial Crisis of 2008 when the Krona dropped to 11/€, but it rebounded the years after. It is currently worth 9.5/€ or 9/$.
Coins
Sweden has a very long history of coinage, most of which the novice collector will never see. The copper coins from the 17th century and onwards are still relatively feasible to obtain, depending on the condition.
The first decimal coinage was introduced with the Riksdaler Riksmynt in 1855. From 1873 the Krona was used, and Swedish coins started to use the King's motto on its coins. Silver was used extensively until 1966, although the fineness had dropped to 40% from 1942.
The 1 and 2 Öre coins were demonetised in 1971, followed by 5 and 25 Öre in 1984 and 10 Öre in 1991. Now that the 50 Öre has been phased out the subdivision has ceased to exist in physical form. A new coinage was introduced in 2016 with new 1, 2 and 5 Kronor coins and the continuation of the 10 Kronor coin. Coins and banknotes are hardly used in Sweden anymore as almost all transactions are electronic.
https://en.numista.com/catalogue/suede-1.html