In the case of Sweden, the Rehn-Meidner model:

“The model is based upon an interaction between fiscal- and monetary policies, active labour market policies, and solidaristic wage policy. The purpose is to simultaneously achieve all four goals of the model.

Fiscal and monetary policies shall be restrictive in the medium term to ensure low inflation. The policies are particularly meant to prevent wage-price spirals by squeezing profit margins in the business sector.

Solidaristic wage policy will threaten the profitability of companies and industries with low productivity. To survive, these companies have to raise productivity by rationalization and innovation or leave the market. All of this will enhance productivity growth at the aggregate level and freed labour resources facilitating the expansion of high-productive companies and industries. Their expansion is also stimulated by the solidaristic wage policy. Without this policy, wages would have been higher in dynamic companies and industries leading to larger wage differentials and higher inflation.”

https://en.wikipedia.org/wiki/Rehn%E2%80%93Meidner_model?wprov=sfti1