External sustainability in Spanish economy: Bubbles and crises, 1970–2020

We address the issue of sustainability Spain's external debt, using data for period 1970–2020. To detect episodes potentially explosive behavior Spanish net foreign assets over GDP ratio and current account balance ratio, as well adjustments this long period, we employ a recursive unit root test approach. Our empirical analysis leads us to conclude that there is some evidence bubbles in between GDP. In contrast, had subperiods very weak. The episode identified position during 2002–2015 was result country's economic expansion 1995–2007. results also show an adjustment 2008–2019 after start cyclical recession.