Theory and Practice of Crisis in Political Economy: The Case of the Great Recession in Spain

This paper addresses Marx’s theory of crisis in order to analyze the Great Recession Spain, a peripheral economy within Eurozone. It demonstrates that underlying problem “housing bubble” is an incapacity generate surplus value, which turn explains certain particularities related capital composition, productivity, wages, and finance. The article further carries out critique both orthodox heterodox approaches focus on (1) profit squeeze caused by labor market rigidities, (2) underconsumption due stagnant (3) finances, interest rates, indebtedness JEL classification: B14, E11, E20, E43, J30