Financial Times FT.com

Viewpoint: A way out of the crisis

By Xavier Vives

Published: April 28 2009 15:15 | Last updated: April 28 2009 15:15

The current economic crisis is hitting metropolitan areas around the world, and Barcelona is no exception.

Barcelona is also vulnerable because its recent growth has been partly fuelled by the extraordinary expansion of construction and real estate in Spain and rising tourism numbers, both of which have now gone into reverse. The low interest-rate policy of the European Central Bank led to negative real interest rates, diverting resources from industry and advanced services towards real estate.

Professor Xavier Vives

Xavier Vives, professor of economics and finance and academic director of the Public-Private Research Center at IESE Business School

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