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Miguel Sebastián, former Minister of Industry, Tourism and Trade (2008-2011) and director of the Economic Office of the President of the Government (2004-2006), gave a lecture on Thursday at the Faculty of Economics and Business of the University of Murcia in which has analyzed one by one the aspects that, according to their analysis, caused the economic crisis and the lessons learned from what happened.
Sebastián, professor of Fundamentals of Economic Analysis of the Complutense University of Madrid, has summarized for an audience full of students the main lines of his book The false bonanza: How we got here and how to try not to repeat it.
The former minister has made it clear in his lecture that it is a book "of criticism and self-criticism" that he wrote after re-teaching the university and realizing that his students had not been born when the euro was created and they were barely ten years old. when the economic crisis broke out.
In the first place, Sebastián reviewed the large figures of the Spanish economy during the years of economic boom, the decade between 1998 to 2008. GDP growth by 42% or fall of the unemployment rate to 9% were some of the data of what was known as 'the Spanish miracle', a stage in which, according to the former minister, "excesses were committed that were very expensive."
Sebastián has pointed out the high private indebtedness as one of the causes that caused the economic crisis, as well as the external debt, to which, as he explained, nobody took into account because Spain was part of the Monetary Union.
In his lessons learned, the former minister has made it clear that "private debt is not always optimal and the current account deficit when part of a monetary union is not irrelevant."
Sebastián also points out that another of the errors committed by the banks, in order to finance the high level of private indebtedness, began to grant loans with funds obtained from their own indebtedness.
In addition, he has also referred to the consequences for the economy that has been called excessive internationalization of Spanish companies.
One by one, Sebastian has been shedding the causes of the crisis and what can be learned to get to the bubble and the real estate boom, concepts that have differentiated.
The Complutense teacher has also answered a question that has been asked a lot in recent years: "Why did not you click the bubble?".
To answer this question, Sebastian has clarified that the first problem to puncture a bubble is to realize that it is in a bubble "because you do not know that there is a bubble until it is punctured", but essentially also because "water the party" when one is in a moment of economic boom it is very complicated "for questions of political difficulty".
Sebastián, who has confessed that he has a predilection for climate and life in Murcia and Almería, has finished his intervention by drawing two books among the students.
Source: Universidad de Murcia
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