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

Juan Pablo Mateo ()
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Juan Pablo Mateo: Department of Economics, New School for Social Research and University of Valladolid

No 1715, Working Papers from New School for Social Research, Department of Economics

Abstract: This paper addresses the Marx´s theory of crisis in order to analyze the Great Recession in Spain, a peripheral economy within the Eurozone. It is shown the underlying problem in the capacity to generate surplus value behind the housing bubble, which in turn explain some particularities related to the capital composition and productivity, as well as wages and finance. The document also carries out a critic of both orthodox and heterodox approaches that focus i) on a profit squeeze caused by labor market rigidities, ii) underconsumption because of stagnant wages, as well as iii), finances: interest rates and indebtedness.

Keywords: Theory of crisis; profit rate; Spain; housing bubble; interest rates; wages (search for similar items in EconPapers)
JEL-codes: B14 E11 E20 E43 J30 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2017-04
New Economics Papers: this item is included in nep-eec, nep-hme, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.economicpolicyresearch.org/econ/2017/NSSR_WP_152017.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:new:wpaper:1715

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