“Slip Slidin’ Away…”

Spain’s economy is sliding back into recession.  Nobody is surprised.

PARIS — To no one’s surprise, the Spanish economy is sliding toward recession, official data showed Monday, contracting in the fourth quarter after a stagnant third quarter.

Gross domestic product shrank by 0.3 percent in the October-December period from the July-September quarter, when the economy marked time, the National Statistics Institute reported in Madrid. From a year earlier, the economy eked out fourth-quarter growth of 0.3 percent.

The institute estimated that the Spanish economy grew by a meager 0.7 percent for all of 2011.

“The G.D.P. outlook for Spain is pretty grim,” Ben May, an economist with Capital Economics in London, said. “We think it will continue to contract on a sustained basis.”

Insert Broken Record Here:

  • Expansionary austerity is a myth
  • Divorcing monetary policy from fiscal policy is a bad idea

Cue Paul Simon!

Slip slidin’ away
Slip slidin’ away
You know the nearer your destination
The more you’re slip slidin’ away

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