32 years ago

32 years ago

On December 31, 1986, I began publishing articles on economics on ABC. And what worried an economist then? Well, simply, it seemed evident that only the rubbish of the economic model that Boyer had planned, as Minister of Economy of the Government of Felipe González, remained. Spain, since 1986, was fully within the European community world. And that model was adjusted, in an acceptable way, to the born demands, that had been raised then in the Spanish economy. That great expert who is Jaime Requeijo pointed out then that the essential problem was that of the external balance that was beginning to be very worrying.

The model of Boyer, as Professor Sanchez Lissen then reported, had its roots in the Pacts of La Moncloa, as it seemed to show in what was indicated by the extension of the budgets of 1982. Boyer's position, as a consequence of the outbreak of the Rumasa's case and the banking crisis, was to accentuate a restrictive policy, thanks to budgetary decisions that would reduce the public deficit, without trying to appeal to the Bank of Spain; and all this, together with balancing policies of the balance of payments, including a realistic policy of the peseta exchange rate, even affecting an immediate devaluation, as well as the implementation of VAT, and accepting the improvement of business surpluses, to recover the growth of investments, in addition to an industrial restructuring.

The "cable car pact" -for having been plotted in a hole in the vicinity of the La Moncloa cable car by important socialist leaders- convinced Felipe González, who on July 4, 1985, replaced Boyer for Solchaga, and in 1996, He went on to head another model, the Social Keynesian. There were immediately increases in the public deficit, rigidities in the labor market, increases in the external deficit and disregard for the functioning of the free market. The result produced a considerable crisis, that when entering Spain in the European Monetary System, generated an unfavorable conjuncture.

Economists criticized this novelty, and I, from ABC. Now, does not a budgetary imbalance reappear, a worrying labor policy, a deficit in the trade balance? Do not we see something similar? That's why criticisms have to be reborn. .

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