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No, but it appears the European Union didn't like it...

See this Bloomberg piece.

This Spanish interview with El Economista includes the following claim:

¿Está satisfecho de que al final se hiciera lo que usted proponía, aumentar las provisiones bancarias y el control financiero?

Se hizo finalmente lo que yo decía, pero no se hizo todo. El Banco Central Europeo (BCE) bajó demasiado los tipos de interés respecto de lo que yo decía. Y el tema de las provisiones se hizo con dificultades porque a Europa no le gustaba nada lo de mejorarlas y cuando se hizo fuimos muy criticados dentro y fuera de la banca. Nunca entendí por qué no se daban cuenta de que al ritmo al que iba la economía española era fundamental que se protegiera y tuviera unas mayores provisiones. Finalmente se reforzaron y eso ha tenido unos efectos absolutamente benéficos porque somos uno de los pocos países del mundo occidental que está pasando esta etapa con una cierta tranquilidad bancaria. Nuestra banca hasta ahora se ha comportado muy bien. Unos bancos menos, pero bueno.

Are you happy that in the end what you proposed was done, to increase the banks' provisions and financial control?

In the end what I said was done, but not all of it. The ECB lowered interest rates too much with respect to what I was saying. And provisions were done with difficulty because Europe didn't like the idea of improving them and when it was done we were much criticised form within and outside banking. I never understood why they didn't realise that at the spped that the Spanish economy was going it was essential that it protect itself and have greater provisions. In the end they were reinforced and this has had absolutely beneficial effects because we're one of the few countries in the world that's going through this time with a certain banking calm. Our banks have so far behaved really well. Some less so, oh well...

The Bloomberg article explains
The Spanish model has become the prototype for so-called counter-cyclical provisioning, said Paul de Grauwe, an economics professor at the Catholic University of Leuven in Belgium. Regulators in London and Brussels are considering adopting the Spanish model as they seek ways to prevent future blow-ups.


"It shows how far banks have been distracted from their historically conservative mission that people are getting excited by this now," said Jonathan McMahon, a former official at the U.K. Financial Services Authority and now a director of Promontory Financial Group. "Maybe Spain just remembered what to do when other people forgot."


The central bank implemented the system partly to rein in lending after Spain cut borrowing costs as a precursor to the start of the euro, Rojo said. Spanish interest rates plunged to 3 percent in 1998 from as high as 9.25 percent in 1995.


"We tried to sell it in Europe when we did it and we weren't successful," Rojo said. "The model has worked very well for us and it should work for everyone."

Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Carrie (migeru at eurotrib dot com) on Fri Jan 21st, 2011 at 04:56:37 PM EST
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