I try not to use the word "capitalist" anymore, as it seems to prevent thinking. I prefer "free market." Despite the title, the writer of Sweden is Capitalist over at National Review agrees, and gives even better reasons.
I have written before that Sweden is not so socialist as American imagination would expect. It was mildly socialist 1930-1970; hard socialist 1970-1990; and since then has backed off considerably. They have large government spending per person, and the sort of social safety net that only works when everyone looks like second cousins. The author notes that the corruption is very low (as it is in all the Scandinavian nations), and they seem to actually get something for their money, so she doesn't object as much as she might. I remain unconvinced, but consider it a valid point.
Ms. McCloskey gives the topic a better overview than I do. There is some of the same information I read in Debunking Utopia.