The Stabilization Plan of 1959 ( es, Plan de Estabilización de 1959) or the National Plan of Economic Stabilization () were a series of economic measures taken by the

Spanish Government gl, Goberno de España eu, Espainiako Gobernua , image = , caption = Logo of the Government of Spain , headerstyle = background-color: #efefef , label1 = Role , data1 = Executive power , label2 = Established , da ...

in 1959. Its main goal was the

economic liberalization Economic liberalization (or economic liberalisation) is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical liber ...

of the Spanish markets, marking a turning point from the previous policies oriented towards achieving

autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especiall ...

. The implementation of the plan led to

mass migration Mass migration refers to the migration of large groups of people from one geographical area to another. Mass migration is distinguished from individual or small-scale migration; and also from seasonal migration, which may occur on a regular basis ...

movements (internal migrations but also abroad), with the population and the economic activity concentrating in the most dynamic areas, hollowing the rest of the country. The Plan led to an

economic boom An economic expansion is an increase in the level of economic activity, and of the goods and services available. It is a period of economic growth as measured by a rise in real GDP. The explanation of fluctuations in aggregate economic activ ...

in Spain for most of the 1960s. The monetary reserves of the

Bank of Spain The Bank of Spain ( es, link=no, Banco de España) is the central bank of Spain. Established in Madrid in 1782 by Charles III, today the bank is a member of the European System of Central Banks and is also Spain's national competent authority fo ...

increased,

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...

dropped from 12.6% in 1958 to 2.4% in 1960, Spain attracted foreign investment, and the relaxation of

tariff A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and p ...

s led to the import of new technologies. On the negative side, unemployment increased due to the decrease in production caused by higher imports, which lowered the demand for national products. This decrease in production also led to lower consumption and

wage freeze Incomes policies in economics are economy-wide wage and price controls, most commonly instituted as a response to inflation, and usually seeking to establish wages and prices below free market level. Incomes policies have often been resorte ...

References

See also