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Spain and the influence of drawers (post by invitation)

inaugurate the 'by invitation' in the blog. Today, Orejana .

At times difficult to distinguish the influence of education in our way of perceiving the world. Just look at the pages of any of the economic sections of major newspapers in the world to have a full dimension of the situation facing Spain: recession, twin deficits, rising unemployment and high wage costs. But the problem of the motherland is not inside but outside its borders.

Valga an anecdote to illustrate the case. The island of Hong Kong remained until July 1, 1997 under British government control, from which time he left his colonial status to annex the territory of the People's Republic China. However, the transfer agreement was signed in December 1984, almost thirteen years before the actual transfer. The possibility that the island was ruled by the giant eastern generated a significant decline in asset prices since the start, particularly the real estate industry (after all, what difference would the rights of property under a communist government?). In any case, in those years of the early eighties, families and businesses in Hong Kong faced the loss of a significant proportion of their wealth. Faced with the possibility of a recession, the government of the island decided to implement a substantial devaluation of local currency (almost a third of its value.) The devaluation allowed this case to distribute the losses between debtors and creditors, blending liabilities denominated in Hong Kong dollars (elegant, when compared with the subsequent devaluation and asymmetric pesification Argentina). Neither history nor analysis belong to me, both are well documented in a concise written work a few years ago by Beer, Sargent and Wallace . For those interested, they know better than me explain the details.

back to the Iberian Peninsula, Spain does not seem so far away from Hong Kong (in economic and non-geographic, of course). The international crisis triggered a review of the wealth of individuals: a drop in the price of real estate and major assets the economy. With one difference: his commitment to a currency that does not control.

certainly difficult to distinguish the influence of education in our way of perceiving the world. In my case, I find it hard not to insist on some issues, and often return to the same debates over and over again. In this, everything seems reduced to a problem of rules versus discretion or flexibility against rigidity, as we remembered during a Saturday platense DH. Of course the problem could be avoided. In the final analysis, the vulnerability of the economy should always be a result of the policy implemented, but that is a topic for researchers (and those who enjoy Uchrony). No rule is moved, the great cronopio told us, the question always falls on the scale of the shock.

plagiarizing an old singer Huanguelén payments, I think a model is like a drawer. If there is something useful in an open it all the time, and if inside is crap, does not open ... never with enough crap out there.