La Inflación En España

Inflation in Spain since the introduction of the euro

Luis Javier Del Moral Ortega

Index :
1. Introduction
2. History
3. Spain in the EU
4. Inflation in Spain
5. 1999, Euro
6. Conclusion
7. Bibliography

Introduction
Inflation is the continuing and persistent rise in the general price level of a particular territory in a specified time.
Inflation is badfor the economy due to loss of competitiveness caused by comparing the economies of countries with other inflationary with balanced growth.
A high and persistent inflation also prevents an allocation of resources, both as productive consumption.
Moreover, inflation can have adverse effects on the currency of inflationary territory (losing value compared to other and for our goods and serviceswhose prices increase).
Finally, another negative effect of inflation is its effect on investment. A higher price level is usually increased the interest rate to compensate for increased consumption, and this rate hike hurts medium term investment, which is reduced.
In Spain, the instrument used to assess inflation is the Consumer Price Index (CPI), which measures the evolution of a set of prices ofproducts and services that are most consumed in Spain by weighting their importance. These weights are updated regularly
Inflation may also occur on unemployment. When the price increases in Spain, it reduces the competitiveness of Spanish products. When demand levied Spanish goods and services will reduce the number of workers required to produce, leading to an increase of Unemployment inSpain. Conversely, lowering inflation in Spain, Spanish products will be more competitive, which will increase Spanish exports and therefore employment.
Bank of Spain: the state bank, provided the effective administration and custody of foreign reserves, is the bank of banks and shares responsibility with the European Central Bank monetary policy. Is an independent legal personality and its capitalowned. The Bank of Spain controls and inspects all financial institutions and through the Minister of Economy and treasury notes and creditiva monetary policy to follow.
History
With the Roman Empire appears the first position of a single citizenship in the European territory, Charlemagne established a monetary union (pound of silver).
In 1814, Napoleon showed its Europeanist aspiration; Afterthe Second World War, Europe is an area in state of economic ruin (there is the desire of reconstruction).
By 1950 (with the Cold War), there is the European integration as a third way against the United States and the Soviet Union. The birth of the European Economic Community (EEC) is based on: the Benelux customs agreement (between Belgium, Holland and Luxembourg) and the European Coal andSteel Community (ECSC).
The creation of the ECSC. The Europe of Six: Germany, Italy, France, Belgium, Holland and Luxembourg, which will henceforth be the core from which it will adhere on the other democratic European countries.
The next step was the proposal to create a common market among the six. This proposal materialized in 1957 in two treaties: the EEC (better known as the Treaty of Rome,which included eliminating quotas and tariffs between the six and establish common policies) and the European Atomic Energy Community (EURATOM).
The Europe of the Nine: United Kingdom, Denmark and Ireland (1973)
The addition of Greece: 1981.
The addition of Spain and Portugal: 1986. Stresses in this period, the Single European Act and the Maastricht Treaty.
The Europe of Fifteen: Austria, Finlandand Sweden (1995). Stresses the Treaty of Amsterdam.
Spain in the EU
The political regime of General Franco dictatorship in the second half of the s. XX, prevented the incorporation of Spain in the European institutions. Was a long process.
The stabilization plan (1959) provides the first steps of approach to Europe: opening of foreign trade and the movement away from autarky. Spain calls...