In the first part, Spain’s economy historically will be analyses, in order to identify its strengths and weaknesses and eave a better grasp and understanding of the current situation Spain faces today. Later will be analyses in depth the factors that have led Spain to the current financial and economic crisis and the economic situation that Spain faces. Further on will be considered the recent efforts of the government to overcome the country’s situation and their success.
In continuation will be discussed… Spain has experienced many financial crises throughout its history. These financial crises have different origins, but they do have common threads. The current recession and following debt crisis follow the same pattern. The monetary and fiscal policies put in place by the Spanish government have played a role in creating and prolonging the current crisis.
GAP, employment, private consumption, employment, labor costs, inflation, government deficit, debt ratios, risk premium rates, credit growth, the impact of fiscal policies and the role of economic policies will be discussed in order to shed light on Spain’s current economic situation and analyses Neither or not they have the ability to overcome the current economic crisis. The Spanish government can take action to improve the economy and to lessen the effects of its financial crises. The recent supreme mortgage crisis and its repercussions have stimulated renewed interest in the study of other financial crises.
Economic and financial crises of the Spanish economy have been a subject of study for many years. Harrison (1985), analyzed the era stretching from the Spanish civil Near to Spain’s admission to the European community in the year 1986. Skinny and Reinhardt (1999) show that generally, a multitude of weak economic fundamentals precede economic crises. Boyd, Nicola, and Louisiana (2009) question whether a banking crisis” is actually a crisis in the banking system or Just a response to government interventionist policies. Finally however, Clomp (2010) claims that there IS no common factor that causes crises.
Spanish Economic History ere history of Spain can be traced back to the earliest of people; The Iberian, Cells, Greeks, and Carthaginian were all visitors at some point of time. The Romans arrived in Spain shortly before BBC and occupied the territory for over 600 years. Thanks to the Romans, ‘Hispanics developed a road system, aqueducts, theaters, baths and the basis of a common language. The contributions of Rome to Spain are truly significant, including language, government, culture, religion, architecture and infrastructure.
On the other hand, Spain’s natural resources were obviously useful in further expanding the Roman Empire, although Romeos one major influence to Spain is no doubt religion, when Spain received Christianity. Today, Roman Catholicism is the leading religion in the country (with 94% Roman Catholics). Although the Philologist Kingdom settled in Spain in DADA, this highly Romanizes group did little to further Iberian culture and there are few remnants of their period in Spain. Another very significant influence and key point in Spain’s history is the Moorish Invasion. He Moors were a nomadic people from North Africa. They invaded Spain taking their religion and culture with them in 711. In Southern Spain, the Moors established a caliphates in CORBA, and the court grew in wealth, power, and culture. During this period, Christian rulers continued efforts in Northern Spain to recapture the south. ere last Moorish city, Granddad was recapture in 1492, and most of the Moors were driven out of Spain. It can be said that seven hundred years of Moorish influence feet an unquestionable mark on Spain, making it distinctly different even today from the rest of Western Europe.
The Moors not only brought their religion, but also their music, their art, their view of life, and their architecture. From the establishment of the first mosque in CORBA in 785 until the time of their expulsion by the Catholic kings in 1492, the Moors dominated the intellectual life of the area and had a profound impact on European civilization, which took in many of their ideas. For example, with advanced irrigation systems imported from Syria and Arabia, the Moors turned Spain’s dry plains into fertile farmland.
To the land’s traditional crops, the Moors added oranges, lemons, rice, cotton, and much more. It can be argued that Muslim influence was good for Spain as it modernized knowledge and learning in the country, and encouraged a wider cultural awareness through its introduction of different architectural designs, style of religion and language structure. 6 ere Spanish Conquest of the Americas In the 1 5th century Christopher Columbus, an expert in literature as well as sailing, believed he could sail across the Atlantic to Asia, and moved to Spain where the monarchs approved the venture.
Columbus set forth on his Journey, landed of the coast of the Caribbean island in 1492, and thus the Spanish invasion began. After a Nave of ‘conquistadores’, the Spanish defeated the Aztec, Amman, and Inca Civilizations, colonizing a good part of South and central America and organized a huge imperial system to exploit the land, labor, and mineral wealth of the New World. During the Spanish colonial period, the economy was based on exploitation, both of land and of Indian labor. The ‘encomia’ system put in place consisted of, in return and labor to the Spanish.
Another aspect of the Spanish colonial economy was the exploitation of land. Spain collected, through the ‘quaint, one-fifth of all subsequent ownership grants. Huge amounts of gold and silver was extracted from the New Nor, as well as the gold and Jewels stolen from the Aztec. The New World became real cash cow for Spain, which used its 20% of proceeds to wage endless wars in Europe. Slavery also became common in order for the Spanish merchants to retain something to sell in return for the gold, silver and other goods produced in the New Nor. The Spanish kings failure to manage his complex and flung out empire, the any costly lost wars waged in Europe in that period, and the overlooked inflation led to the bankruptcy and downfall of the Spanish empire. Individuals and entities invested beyond their means, and gold and silver prices fell dramatically, which led to a series of defaults in the sixteenth and seventeenth centuries. Treasure and Prices in Spain (1505-1650) In the sixteenth century, gold and silver poured into Spain from its New World colonies and the rest of the Spanish empire.