Share on Facebook Share on Twitter Share on Reddit + - Spain’s balance sheet recession By Delusional Economics in European Economyat 7:49 am on April 11, 2012 | 14 comments Login to access MacroBusiness Members special reports. If you are not a member, sign up here. Please fill in the following form to login Username: Password: or Please fill in the following form to subscribe * Username * Email * Password Share on Facebook Share on Twitter Share on Reddit + - YOU MAY ALSO BE INTERESTED INWeekend links 8-9 August, 2015 James Ensor, The Frightful Musicians,Ship of fools sail the jobless seasFrom the SMH comes the ship of fools: ANZUnemployment surges to 12-year highThe ABS has just released its unemploymentTreasury greybeards warn of Australian financial crisisYesterday the blog witnessed some lively debate Comments Shay April 11, 2012 at 8:43 am Thanks for the ongoing education DE MattR April 11, 2012 at 10:06 am Very informative, thanks for the article. Alex Heyworth April 11, 2012 at 11:08 am DE, not sure if you have seen this article I linked to a while back http://blogs.ft.com/gavyndavies/2012/04/01/spain-in-the-austerity-trap/#axzz1qvekI1z7 Your opinion? Delusional EconomicsMEMBER April 11, 2012 at 3:25 pm It is a good article that clearly highlights the risk of using fiscal tightening alone to address the imbalances in the EuroZone. Alex Heyworth April 11, 2012 at 4:51 pm Yup. He also seems to be hinting that the long list of other things that need to happen is likely to be ignored, so Spain will be stuck in the austerity trap. Explorer April 11, 2012 at 11:53 am Would leaving the Euro and devaluing really be worse than 10 years of sporadic recessions and 50% youth unemployment? OC April 11, 2012 at 12:56 pm For the average spanish punter, no. For the French and German banks that would get wiped out when their loans to the Spanish were redenominated to pesos, YES! BrynPears April 11, 2012 at 12:27 pm Ummm…am I being naive here, or does the description of the run-up to crisis in Spain given above not fit the Australian economy with an eerie and terrifying exactness? Alex Heyworth April 11, 2012 at 1:55 pm Some of it. There are significant differences – Australia has its own currency and a resources boom in progress. The labour market here is more flexible. Alex Heyworth April 11, 2012 at 1:58 pm PS, note that GDP growth in Spain doesn’t exceed 1.5% at any point on the chart. GDP growth at 1.5% in Australia would be seen as a dismal policy failure. Jack April 11, 2012 at 2:05 pm I remember reading somewhere that Spain has as many unsold houses as the US with 1/6 th of the population, or something similar a63 April 11, 2012 at 5:58 pm This is one from CNBC which will give you a laugh…it did me as this guy just realised Spain is a bigger problem than Greece. http://www.cnbc.com/id/47008853 3d1k April 11, 2012 at 6:13 pm lol. He hasn’t been reading DE!