Surprisingly reflect on the sad reality of "PIGS" (Portugal, Ireland, Greece and Spain / Spain ).... caused by the Euro. If every country had been since 2000 to manage its currency (devaluation is not bad, as Pissarides comments, and for English tourism corroborate what!) Would not have achieved this. Currently, the U.S. (Fed) has been able to "buy debt" against money market gradually injected to stimulate the economy (household spending, businesses and institutions ...), China has done for years ( even supporting some inflation ).... Everyone knows devalue their currencies to sell more, export and attract tourism. Less EUROPE ... and Spain in the Euro zone.
Europe and the European Central Bank, are only obsessed with inflation and compliance with the ratios (debt, banks etc .)... forget that European economies are not a comprehensive package.
can never compare Spain to France or Germany, for example. The primary sector (Agricultural) has been weakened in our country (milk, wheat and other "fees"), in exchange for temporary grants to "divide" the production of this sector among EU countries. The secondary sector (industry) has always been underrepresented in our economy, with significant presence of foreign groups in the 70's when our workforce was "attractive" (car industry as ex.) so that, once integrated into the EU .... to shift production to Eastern Europe. At the end we stayed in a country with a tertiary sector as the basis of its economy. Tourism has historically been and is currently a key driver of our economy. However, we can not devalue the peseta or act with "stabilization plans" because we got into the Euro (best EURO / ERROR) and can, indeed, act on productivity, reduce emissions of debt and other measures to make up our ratios in the EU.
Funny analyze the situation in Sweden, Denmark and England . NO entered the Euro and going, economically speaking, good. Control the value of their currencies against other currencies, go deeper in debt and interest rate ..... and it is clear that not occur to them to join the single currency.
Is the Problem of "PIGS"? An output of the Euro may become more than a possibility, a MUST. The Nobel Prize in Economics, Christofer Pissarides, as recently evoked: "If Spain is rescued should return to the peseta." It raised devalue the peseta by 20% and then recalculate the debt and asset value as that value English ... would that also reset the currencies of other countries. PIMCO, the fixed income manager, and recently recommended to Portugal, Greece and Ireland out of Euro to resolve your situation.
Zabaleta Mark
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