Integration, spurious convergence, and financial fragility: a post-Keynesian interpretation of the Spanish crisis

Esteban Perez Caldentey and Matías Vernengo

Brazilian Journal of Political Economy, 2018, vol. 38, issue 2, 304-323

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. JEL Classification: F33; F45; O52.

Keywords: Euro; macroeconomic crisis; Spain (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... l/article/view/70/63 (application/pdf)

Related works:
Working Paper: Integration, Spurious Convergence, and Financial Fragility: A Post-Keynesian Interpretation of the Spanish Crisis (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:38:y:2018:i:2:p:304-323:id:70

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().