This article offers a narrative of the Spanish crisis building upon previous literature and the papers published in this issue. This narrative focuses on two main topics: (1) the reasons why the Spanish economy embarked in the expansionary/speculative path resulting in an over-accumulation of...

Over the period 19952006 the Spanish economy experienced a rapid increase in employment and output growth, a surge in investment over GDP, a substantial deterioration in the current account balance and an improvement in the finances of the social security system. This paper presents a dynamic...