Xavier Freixas (UPF and Barcelona GSE) analyzed the financial crises and explained their costs, the reducation in economic growth, and other indirect costs during a conference organized by Càtedra Ciutat de Castelló.
Freixas highlighted that the last financial crisis and its recapitalization had a high cost per capita. In this line, he calculated each Spaniard has paid 851€ to rescue the banks. Xavier Freixas also pointed out some aspects to detect financial crisis such as financial bubbles, excessive indebtedness, foreign capital inflow, and excessive credit growth.
"The next financial crisis will be different and our responsibility is to prevent the irrationality that precedes it," Freixas said during his talk.
