The role of Central Bank and trade cycle: evidence from Spanish economy

Abstract

In this paper we try to understand the consequences of the active intervention of the Central Banks in the economy and the reasons behind it. We’ll pass through the Spanish economy from 2000 to 2016 and many macroeconomic aspects, like inflation, interest rate, bank credit or housing prices, to form a general view of the evolution of the crises and try to find out the causes and consequences of it. We will explain our thesis helping us with the Trade Cycle of the Austrian Economic School. At the end I’ll propose some possible solutions to the problematic.