ABSTRACT
In this chapter, the author presents succinct views of what constitutes the Classical approach from a heterodox perspective, and outlines his own version derived from Lowe's synthesis. He then proceeds to link up the main thrust of these interpretations with the central tendencies of the Spanish economy. The Spanish economy traversed through a decade of development in the 1960s, followed by a period of depression lasting from 1975 through the early 1980s, a faltering recovery ending in the 1993 slump and a new cyclical upturn ending the century. The author lays out the contrasting views of the monetarist and Post-Keynesian traditions regarding the role of money and credit in business activity. He also outlines a theory of inflation elaborated by A. Shaikh as an extension of his model of finance, accumulation and cycles. The author shows its connection with the Classical approach and finally its empirical strength applied to the Spanish case.
