NC State Experts Offer Insight On Fallout From Greek Economy

Greece is the focus of global attention as observers try to determine the economic, financial and political fallout stemming from instability in the Greek economy. North Carolina State University researchers can help explain exactly what happened, and offer insights into what is likely to happen next.

Dr. Mehmet Caner, associate professor of economics, 919/513-0853 or mehmet_caner@ncsu.edu, is an expert on international economics. “I think that given the large debt/GDP ratio of Greece, this is a long-term problem,” Caner says. “The markets are not still convinced that, in the next two years, the Greek government can fix the deficit and reduce the debt. If this is the case, we may see a default on Greek bonds.”

Dr. Mark Nance, assistant professor of political science, 919/600-3158 or mark_nance@ncsu.edu, is an expert on European politics and international political economy. “Europe is still struggling to govern the Euro through a complex system of rules and politics, although its role in the world economy will prevent it from falling apart completely,” Nance says. “But this crisis shows how integrated the global economy has become. Germany is afraid to bail out Greece because of domestic political fallout, but that decision has global ramifications.”

Dr. Michael Struett, assistant professor of political science, 919/515-5034 or mjstruet@ncsu.edu, is an expert on international relations, organizations and law. “Either Greece will have to leave the Euro and reestablish its own currency, or the European Union is going to have to develop some new, more intrusive rules about how Euro participants manage their government budgets and tax collection,” Struett says. “In the past, challenges like this one have led to a deepening of the European project, not to its abandonment, and my guess is that is what will happen again this time.”

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