Today in Barcelona the Nobel Prize winner for Economy in 2004 and adviser to the FED, Finn E. Kydland gave a warning on the “Argentine Risk” through which the Spanish economy is passing, similar that which the Latin American country suffered in the 80’s, and has now committed itself to long term policies as the only way towards what he called the “Finnish effect”.
The Norwegian economist made these statements to some of the members of the Real Academia de Ciencias Económicas y Financieras of Spain (RACEF), where this afternoon he was admitted as Corresponding Member for Norway at the Solemn Session of Closing the 2009-2010 Academic Year, co-presided over by the President of the Catalan Parliament, Ernest Benach, and the president of the RACEF, Jaime Gil Aluja, who replied to the speech given by the new Member.
Yesterday he made a presentation to the Catalan Parliament where he warned on the excess of debt of Spanish Administrations and the “immediacy” of their economic policies, Kydland insisted before the RACEF on the need to promote credibility in order to attract investors. “Governments should not introduce further uncertainty in the market places by only being concerned with consumption, but it should maintain coherence and provide tranquillity to the markets”, he assured.
The new Academy Member was awarded the Nobel Price jointly with Edward C. Prescott “for their contributions to dynamic Macro-economy; the consistency in time of economic policy and the driving forces behind the economic cycle”. Currently he is Professor of Economy at the University of California.
