The Spanish Hangover
CEPS Policy Brief No. 267
5 Pages Posted: 15 May 2012
Date Written: April 19, 2012
Spain faces high unemployment and slow growth. This paper focuses on an important source of those problems, namely its housing market. While some adjustment has occurred since Spain's housing bubble burst in 2008, the authors find that house prices and construction need to decrease more to slow Spain's unsustainable accumulation of foreign debt.
Keywords: Spain, unemployment, growth, housing market, house prices, foreign debt
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