With all the uncertainty surrounding Portugal's economy, many people are asking if Spain could be next to develop problems. I am uneasy about comparisons: the economic systems and the recent evolution of the two countries are very different. Why should Spain be compared to Portugal instead of, say, to the Netherlands?
The truth is Spain does not have a history of defaults. It did become a "serial defaulter" in the 16th century, after failing to invade England. But there are no plans for another invasion, so I do not see the danger for a default. Neither did Spain default in peacetime in the 20th century, as the US did in 1933, or seek a bailout, as the UK did in 1976.… Seguir leyendo »