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The Fall in Profitability Underlying the Great Recession

  • Juan Pablo Mateo ToméEmail author
Chapter

Abstract

The hypothesis put forward in the book is that the ultimate cause of the crisis in Spain lies in capital profitability. This idea is subject to empirical verification in this chapter. For this, the author carries out a complete analysis of various indicators of profitability, and also from different perspectives, which demonstrates the existence of an acute underlying problem of surplus generation. On the one hand, the volume of surplus begins to fall not only well before the outbreak of the crisis, but also in relation to the fall in investment and other macroeconomic variables. On the other, the rate of profit was at the beginning of the boom in the mid-1990s already relatively low compared to previous decades, and continues to decline before and during the current crisis. Finally, a comparative study of profitability with other economies of the Eurozone is carried out, in which the Spanish case stands out.

Keywords

Profit rate Volume of surplus Euro area National accounts Non-financial corporations 

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.University of ValladolidSegoviaSpain

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