The crisis in Spain: origins and developments

Gavilan, Angel; Cos, Pablo Hernández de; Jimeno, Juan F.; Rojas, Juan A.

doi:10.1017/cbo9781139044554.007

Cited by 19 publications

(2 citation statements)

References 5 publications

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“…As with income distribution, there are explanations from both orthodox and heterodox approaches that emphasize the role of finance in explaining this crisis, albeit with a focus on different points. First, some scholars claim that the ultimate cause must have been the excessively low interest rates (even lower in real terms, given the higher relative inflation in Spain), and this explanation is shared by neoclassical authors (Estrada, Jimeno, and Malo de Molina 2009; Gavilán et al 2011; Jorge 2011; De Juan, Uría, and Barrón 2013; Carreras and Tafunell 2018), by the Austrian school (Vara 2009), and even by heterodox scholars (Febrero and Bermejo 2013). This is basically a political account of the crisis; that is, decisions by the ECB were ultimately responsible for the imbalances that led to the recession.…”

Section: Controversies Around the Causesmentioning

confidence: 99%

Theory and Practice of Crisis in Political Economy: The Case of the Great Recession in Spain

Mateo

2021

Review of Radical Political Economics

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This paper addresses Marx’s theory of crisis in order to analyze the Great Recession in Spain, a peripheral economy within the Eurozone. It demonstrates that underlying the problem of the “housing bubble” is an incapacity to generate surplus value, which in turn explains certain particularities related to capital composition, productivity, wages, and finance. The article further carries out a critique of both orthodox and heterodox approaches that focus on (1) profit squeeze caused by labor market rigidities, (2) underconsumption due to stagnant wages, and (3) finances, interest rates, and indebtedness JEL classification: B14, E11, E20, E43, J30

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Section: Controversies Around the Causesmentioning

confidence: 99%

Theory and Practice of Crisis in Political Economy: The Case of the Great Recession in Spain

Mateo

2021

Review of Radical Political Economics

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“…How macroeconomic imbalances were originated in the Spanish case has been documented in many papers (see, for instance, Gavilán et al, 2011a and2011b). Upon entry in the UEM, the fall in interest rates and the expansion of credit gave impulse to a large expansion in demand and to a housing bubble.…”

Section: Debt External Imbalances Internal and Fiscal Devaluationsmentioning

confidence: 99%