‘The Great Recession' was preceded by a prolonged period of high growth accompanied by low and stable inflation, the so called ‘The Great Moderation'. In Spain, a similar pattern was observed: in fact, potential growth estimates were trending upwards, implying that output gaps remained...

‘The Great Recession' was preceded by a prolonged period of high growth accompanied by low and stable inflation, the so-called ‘Great Moderation'. During that period, potential growth estimates were trending upwards and output gaps remained small. However, other imbalances were progressively...