Untangling Spain's Fiscal Policy
Regarding your article "The strength beneath Spain's struggle" (Business Outlook, Mar. 27), Spain's socialist government is notorious for its bureaucracy and discombobulated fiscal policy. Spain must cautiously monitor its fiscal policy because it could jeopardize this current economic upturn. Government spending, taxation, transfer payments, and cohesive income policy must be regulated to facilitate this economic growth.
In order to catch up to the rest of the European Union, Spain must adhere to a rigorous plan of encouraging price stability, economic growth, maximizing employment, and balance-of-trade payments. The Bank of Spain should follow the lead of the Federal Reserve and tighten the money supply but be cautious not to stifle demand. According to the current Spanish consumer-price-index figures, Spain is on its way to a recovery with only a moderate inflation predicament.