6. The Isolation from the International Economy: Civil War and Autarky (1936–1951)

Spain was a closed economy during fifteen years. Initially it was so because of the Civil War—social revolution and war economy included. During Second World War closing was radical as foreign currency was very scarce and military alliances very risky. The new regime deployed a completely closed economy—an autarky—that was defined as a permanent and strategic choice for Spain. Consequently, Spain did not enjoy most benefits of post-war reconstruction, contrary to most Western European countries. This long autarky made a strong imprint in Spanish economy, difficult to overcome. It impoverished the country, it induced regressive distribution and increased inequality. Market intervention was widespread as well as black markets and rationing. The exchange rate was deeply altered, as never before nor after.