Integration, spurious convergence, and financial fragility: a post-Keynesian interpretation of the Spanish crisis
ABSTRACT The Spanish crisis is generally portrayed as resulting from excessive spending by households associated to a housing bubble and/or an excessive welfare spending beyond the economic possibilities of the country. We put forward a different hypothesis. We argue that the Spanish crisis resulted, in the main, from a widening deficit position in the non-financial corporate sector and a declining trend in profitability under a regime of financial liberalization and loose and unregulated lending practices.
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| Main Authors: | , |
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| Format: | Digital revista |
| Language: | English |
| Published: |
Centro de Economia Política
2018
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| Online Access: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572018000200304 |
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| Summary: | ABSTRACT The Spanish crisis is generally portrayed as resulting from excessive spending by households associated to a housing bubble and/or an excessive welfare spending beyond the economic possibilities of the country. We put forward a different hypothesis. We argue that the Spanish crisis resulted, in the main, from a widening deficit position in the non-financial corporate sector and a declining trend in profitability under a regime of financial liberalization and loose and unregulated lending practices. |
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