The Spanish Hangover

Author
Daniel Gros, Cinzia Alcidi
Content Type
Policy Brief
Institution
Centre for European Policy Studies
Abstract
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.
Topic
Debt, Economics, Markets, Financial Crisis
Political Geography
Europe, Spain