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Theory and Practice of Crisis in Political Economy: the Case of the Great Recession in Spain


  • Juan Pablo Mateo

    () (Department of Economics, New School for Social Research and University of Valladolid)


This paper addresses the Marx´s theory of crisis in order to analyze the Great Recession in Spain, a peripheral economy within the Eurozone. It is shown the underlying problem in the capacity to generate surplus value behind the housing bubble, which in turn explain some particularities related to the capital composition and productivity, as well as wages and finance. The document also carries out a critic of both orthodox and heterodox approaches that focus i) on a profit squeeze caused by labor market rigidities, ii) underconsumption because of stagnant wages, as well as iii), finances: interest rates and indebtedness.

Suggested Citation

  • Juan Pablo Mateo, 2017. "Theory and Practice of Crisis in Political Economy: the Case of the Great Recession in Spain," Working Papers 1715, New School for Social Research, Department of Economics.
  • Handle: RePEc:new:wpaper:1715

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    References listed on IDEAS

    1. Andrew Kliman, 2015. "The Great Recession and Marx's Crisis Theory," American Journal of Economics and Sociology, Wiley Blackwell, vol. 74(2), pages 236-277, March.
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    More about this item


    Theory of crisis; profit rate; Spain; housing bubble; interest rates; wages;

    JEL classification:

    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General

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