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

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...

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Bibliographic Details
Authors: Pérez Caldentey, Estaban, Vernengo, Matias
Format: article
Status:Published version
Publication Date:2018
Country:Brasil
Institution:EDITORA 34
Repository:Revista de Economia Política
Language:English
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/70
Online Access:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/70
Access Level:Open access
Keyword:Euro
crise macroeconômica
Espanha
macroeconomic crisis
Spain
Description
Summary: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.