The Spanish government’s budget proposals show some break with the austerity of its conservative predecessor. But there is still an excessive commitment to the orthodoxy of rapid fiscal consolidation. Macroeconomic analysis teaches us that certain decisions which seem reasonable for an individual may have opposite results when all individuals act in a similar way—or when […]
The IMF asks for continuity, but Spain needs change
There are two reasons why we should be concerned about the current state of the Spanish economy. First, all the forecasts made by international organizations share a common view: we are likely to enter a slowdown period. This is worrying since unemployment still stands at 15 percent and many people have yet to return to […]