Search for Efficiency in the Adjustment Process: Spain in the 1980's; Op 57This paper discusses the main features of Spain's recent adjustment effort and assesses its impact on the overall economic situation. It provides a brief historical background on Spain's economic development from 1960 to the early 1980s. The chapter also discusses the authorities' stance on monetary and fiscal policy and examines the role of exchange rate policy in the recovery of the external accounts. The progress in the fiscal area would appear to have been less satisfactory when viewed in terms of the size of the nonfinancial deficit, which over 1982–1986 hovered about 5.5 percent of gross domestic product. The government's medium-term economic strategy is to consolidate the recent gains by maintaining the economy on a path of noninflation growth. Monetary policy is likely to continue to play an active role in this process, as was made clear in early 1987 when the Bank of Spain tightened its stance significantly in response to the buoyancy of domestic demand and the concomitant expansion of private sector credit. |
Contents
II | 1 |
IV | 3 |
VI | 6 |
VIII | 11 |
IX | 14 |
X | 18 |
XII | 19 |
XIII | 20 |
XVIII | 29 |
XIX | 30 |
XX | 31 |
XXI | 35 |
XXIII | 38 |
XXIV | 40 |
XXV | 42 |
XXVI | 43 |
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Search for Efficiency in the Adjustment Process: Spain in the 1980's International Monetary Fund No preview available - 1988 |
Common terms and phrases
average balance of payments Bank of Spain billion capital Chart competitiveness consumer price consumer price index consumption current account deceleration deficit deterioration domestic demand early economic energy enterprises estimated European exchange rate expansion expenditure export performance external accounts fiscal foreign direct investment GDP growth Government impact implemented imports improvement increase indirect taxes industrial sector interest rates International Monetary Fund labor force labor market flexibility liberalization Madrid measures ment monetary policy OECD oil price partner countries percent in 1986 percent in real percent of GDP Percentage change percentage points period peseta private sector public sector rate of growth rate of inflation rate of unemployment ratio real effective real terms recovery reduction rise rose social security contributions Spanish authorities Spanish economy stance structural reforms substantial Table target Target Band terms of trade tion treasury bills U.S. dollar unemployed unit labor costs value-added tax vis-ŕ-vis