Financial crises are traditionally analyzed as purely economic phenomena. The political economy of financial booms and … busts remains both under-emphasized and limited to isolated episodes. This paper examines the political economy of financial …

wages adjusted when the economy slowed down. But in some countries real wage growth stayed too high for too long. The result … this context, the paper discusses the different experiences of the UK (where employment increased) and Spain (where it fell … sharply), and finds that almost two thirds of the employment losses in Spain resulted from the failure of real wages to adjust …

only transitory effects on output and it is identified as a demand shock. Spain seems to have long business cycles, of …

same time offer significant opportunities which should not be ignored. Some of the major challenges the world economy is …