Publication
Apr 2012
This paper argues that the root problem regarding Spain's weak economic conditions is that the Spanish housing bubble was extreme and that the adjustment has simply been too slow. It concludes that house prices have to fall further and the construction sector has to shrink further at the same time that the reallocation of labor towards exportable is slowed down by a labor market that prevents wages from falling quickly enough.
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English (PDF, 5 pages, 1.0 MB) |
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Author | Cinzia Alcidi, Daniel Gros |
Series | CEPS Policy Briefs |
Issue | 267 |
Publisher | Centre for European Policy Studies (CEPS) |
Copyright | © 2012 Centre for European Policy Studies (CEPS) |