July 2015 in Madrid, article in La Razón about the Spanish devaluation

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Rafael Martins de Lima wrote an article in La Razón called The Spanish Devaluation.

This article was written  on the ocassion of the favorable predictions about Spain’s macroeconomic evolution from analysts and the most prestigious banks and agencies. This situation is specially remarkable if we compare it with the situation of Greece and other European countries.

The article relates that there are two main ways for executing a devaluation. The first one is having your own currency, option that for any country inside the Euro implies getting out of it. The second one comes from making a great effort to reduce prices and costs.

The first method would mean returning to the two-digits interest rates characteristic of the peseta and, therefore, distancing from the developed world. The second one, although it is much more difficult, was executed by individuals and companies, allowing Spain to remain part of the developed world.

To read the complete article please download it in the following link

The Spanish Devaluation – La Razón