Spain in the EC: monetary stability versus economic growth?
The question in the title of this chapter is of great importance, for two reasons. First, the Spanish economy experienced intense growth in the 1980s, but did so following a huge expansion in internal demand, which only heightened the conflict between stability and growth. This problem must now be resolved if Spaniards are to look forward to a more promising future. Second, the Spanish government recently presented its convergence programme for the next four years. This plan outlined a strategy with the dual objective of meeting the commitments of Maastricht, which aim primarily at stability, and maintaining the domestic economic expansion, which will make it possible to reduce the level-of-development gap of about 20% between Spain and the European Community average.
KeywordsMonetary Policy Fiscal Policy Social Cohesion Public Spending Social Consensus
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