Financialisation and the economic crisis in Spain

Ferreiro, Jesús; Gálvez, Catalina; González, Ana Rosa

doi:10.4337/9781785362385.00009

Cited by 12 publications

(12 citation statements)

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“…Moreover, there are some similarities between the evolution in Portugal and Spain, notably the strong growth of credit to NFCs and to households to buy houses, and the increase in interest and dividends paid and received by NFCs (Jesús Ferreiro et al, 2016). However, unlike Spain, there was no housing bubble in Portugal.…”

Section: Resultsmentioning

confidence: 99%

Financialization in the European Periphery and the Sovereign Debt Crisis: The Portuguese Case

Barradas

Lagoa

Leão

et al. 2018

Journal of Economic Issues

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The financial sector has acquired great prominence in most developed economies. Some authors argue that the growth of finance is at the root of the financial and economic difficulties of the past decade. This paper aims to analyse this claim by looking at financialisation in the European periphery, focusing on the Portuguese case. The emergence of this phenomenon is contextualised from a historical, economic and international perspective. Based on the analysis of several indicators, the paper concludes that the Portuguese economy exhibits symptoms of financialisation that are typically found in Southern European countries and that these differ significantly from the patterns characterising financialisation processes in more advanced economies. The paper discusses how the increasing importance of financial actors and motives in the Portuguese economy played a decisive role in the emergence of the crisis.

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Section: Resultsmentioning

confidence: 99%

Financialization in the European Periphery and the Sovereign Debt Crisis: The Portuguese Case

Barradas

Lagoa

Leão

et al. 2018

Journal of Economic Issues

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“…In Spain, the rise in unemployment rates in the late 1970s and early 1980s and the wage moderation policies implemented at that time brought about a major decline in the adjusted resources also allowed for an increase in external imbalances, both in terms of current account deficits and external debt (Ferreiro et al 2014). …”

Section: Developments Before the Crisis In The Debt-led Private Demanmentioning

confidence: 99%

“…In Spain, which had become highly dependent on external funding in the years preceding the crisis, the collapse of international financial and inter-banking markets led to massive deleveraging both by financial and non-financial private agents and thus resulted in a sharp abrupt decline in private demand (Ferreiro et al 2014). With the Greek crisis in 2010, Spanish risk premiums on government bonds reached record levels.…”

Section: The Effects Of the Crisis -Contagion Transmission And Economentioning

confidence: 99%

“…Badics and Szikszai (2015) on Hungary, Bahçe et al (2015) on Turkey, Cornilleau and Creel, J. (2014) on France, Detzer and Hein (2014) on Germany, Dymarski (2015) on Poland, Evans (2015) on the USA, Ferreiro, Galvez and Gonzalez (2014) on Spain, Gabbi, Ticci and Vozella (2014) on Italy, Juuse and Kattel (2014) on Estonia, Lagoa et al (2014) on Portugal, Lepper et al (2015) on the UK, Newman (2014) on South Africa, Shabani and Toporowski (2015) on Japan, Stenfors (2014) on Sweden, and Varoufakis and Tserkezis (2014) into debt-led private demand boom, export-led mercantilist and domestic demand-led economies. The focus in our analysis, based on a coherent dataset for all the countries, will be on the trade cycle before the financial and economic crises.…”

Section: Introductionmentioning

confidence: 99%

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Financialisation and the financial and economic crises: theoretical framework and empirical analysis for 15 countries

Dodig¹,

Hein²,

Detzer³

2016

Financialisation and the Financial and Economic Crises

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper analyses the long-run effects of financialisation and of the recent financial and economic crises for 15 countries. In order to provide a theoretical framework, we first outline three types of regimes under the conditions of financialisation, namely a debtled private demand boom, an export-led mercantilist, and a domestic demand-led regime. We then take a look at the sectoral financial balances of the main macroeconomic sectors and at the growth contributions of the demand aggregates for each of the 15 countries, focusing in particular on the trade cycle before the crises. This enables us to cluster these countries according to the typology of regimes and describe the development dynamics among various groups, which were complementary and often mutually reinforcing, in the years leading up to the crises. Subsequently, we focus on the period following the outbreak of the crises and, by considering transmission mechanisms and main obstacles to recovery, analyse how countries in each of these clusters were affected. Finally, we focus on the regime shifts which have taken place in the course of the crises and we discuss the implications of these recent developments for the world economy. Terms of use: Documents in

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“…alternative interpretations of current stagnation tendencies, see Fazzari (2015, 2016), Hein (2016), Palley (2016) and van Treeck (2015). 21 For more country-specific information on the causes of and the responses towards the crisis, see Evans (2016) on the US, Lepper et al (2016) on the UK, Febrero and Bermejo (2013), Ferreiro et al (2016) and Ferreiro and Gomez (2015) on Spain, Detzer and Hein (2016) and Hein and Detzer (2015) on Germany, Stenfors (2016) on Sweden, and Cournilleau and Creel (2016) on France, for example. Spain has been a different case.…”

Section: Figurementioning

confidence: 99%

Inequality and Growth: Marxian and Post-Keynesian/Kaleckian Perspectives on Distribution and Growth Regimes Before and After the Great Recession

Hein

2018

Inequality

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Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

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Financialisation and the economic crisis in Spain

Cited by 12 publications

References 0 publications

Financialization in the European Periphery and the Sovereign Debt Crisis: The Portuguese Case

Financialization in the European Periphery and the Sovereign Debt Crisis: The Portuguese Case

Financialisation and the financial and economic crises: theoretical framework and empirical analysis for 15 countries

Inequality and Growth: Marxian and Post-Keynesian/Kaleckian Perspectives on Distribution and Growth Regimes Before and After the Great Recession

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