The profit rate and asset-price inflation in the Spanish economy

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

No 1721, Working Papers from New School for Social Research, Department of Economics

Abstract: The measure of capital profitability in the Spanish economy is relevant because of both a process of capital accumulation since mid-nineties largely driven by asset-price inflation, as well as the deep economic crisis since late 2008. Therefore, in this article a comparative analysis is carried out using different databases and measures of the rate of profit, incorporating the financial sphere and addressing other different countries of the Eurozone. It shows the scope of the underlying valorization crisis in relation to previous decades and in terms of its fall experienced during the years not only of the housing boom, but also throughout the subsequent recession. In addition, this drop in profitability stands out in relation to other economies of the European periphery. Hence, this analysis puts the rate of profit at the center of the debate on the Great Recession in Spain, despite its absence in much of the economic literature, including heterodox approaches.

Keywords: Profit rate; interest rates; Spain; Eurozone (search for similar items in EconPapers)
JEL-codes: E01 E32 E40 F60 O52 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2017-06
New Economics Papers: this item is included in nep-eec, nep-hme and nep-mac
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http://www.economicpolicyresearch.org/econ/2017/NSSR_WP_212017.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:new:wpaper:1721

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