James Levy

Spain's Inflation Plunges - When Will it End?

Firstly, thanks for this sound and interesting analysis of the current desperate situation of the Spanish economy. I would only add that your statement that ¨the monetary policy applied in Spain between 2002 and 2006 was thoroughly inappropriate¨ is a result of Spain´s monetary policy being set in Frankfurt rather than in Madrid. The Euro is a noose around the neck of Spain´s economy, which desperately needs to devalue its currency as it has so many times in previous economic crisis.

A further very serious component of the actual crisis in Spain in thoroughly corrupt and incompetent government led by José Luis Rodriguez Zapatero, which believed their own lies about the ¨sound¨ economy before the elections in March 2008, and now is totally overwhelmed by the current events without a clue as to what to do other than spend more money to maintain their grip on power as long as possible.

Short Spain as you can, you won´t go wrong in 2009.