The global economy is in a deep crisis at three levels, each driven by the…
Integration, Spurious Convergence, and Financial Fragility: A post-Keynesian interpretation of the Spanish crisis Esteban Perez Caldentey and Matias Vernengo
[Working Paper No. 02/2015]
The authors argue that the Spanish crisis resulted from a widening deficit in the non-financial corporate sector and a declining trend in profitability under a regime of financial liberalization and loose and unregulated lending practices.
WP_02_2015 (Download the full text in PDF format)