Time for householders to buy bonds and save Spain
April 30, 2012
Op-ed by: Martin Feldstein, member of the Belfer Center Board of Directors
Topic: Spain’s economy
“Spain is rapidly approaching a liquidity impasse. Markets are nervous because it is not clear how the government will finance its budget deficit and the rollover of its maturing bonds. The budget deficit now stands at 5 per cent of gross domestic product and the bonds maturing in 2012 equal a further 15 per cent of GDP. The International Monetary Fund expects these large deficits and refinancing needs to continue for several years.”
Feldstein also wrote “The Economy and the Presidency” for Project Syndicate on April 29, 2012.