What’s next for Greece?

EXPERT ALERT

David Ruth
713-348-6327
david@rice.edu

What’s next for Greece?

 HOUSTON – (July 6, 2015) – After the Greek citizens voted a resounding “no” Sunday to a referendum on austerity, what is next for the debt-ridden nation? Rice University economist Ted Temzelides tackles the complex situation in the new commentary “What’s Next for Greece?” on Rice University’s Baker Institute blog hosted by the Houston Chronicle.

Image courtesy Rice University/thinkstockphotos.com

The following is an excerpt from Temzelides’ commentary:

“What is next? There is a core of European officials who would like to see Greece leave the eurozone and issue a parallel currency as a result of the outcome of the referendum. While this would be a disaster for Greece, it would be the best outcome for the eurozone itself, as it would get rid of its uniquely dysfunctional member.

“In my opinion, this outcome makes the most economic sense. In addition, relations are at a low, as the somewhat amateurish representatives of the Greek government have done their best to offend European leaders and to burn bridges with Greece’s creditors. Indeed, this is a government consisting largely of extremely left-wing ideologues who have visions of saving not only Greece, but the entire continent from capitalism. However, the political situation is more complex, and it is more likely that additional long negotiations will inevitably take place and a compromise will be reached eventually. Such compromise, likely brokered by France, will inevitably involve some debt forgiveness for Greece, hopefully with some strings attached, so that Greece will be forced to reduce future spending.”

To read the full commentary, go here.

Temzelides has worked and consulted for several institutions, including the Federal Reserve, the European Central Bank, the International Monetary Fund and the Central Bank of Portugal. His current research concentrates on the intersection between energy economics and finance and global macro growth. More on Temzelides can be found here.

Rice University has a VideoLink ReadyCam TV interview studio. ReadyCam is capable of transmitting broadcast-quality standard-definition and high-definition video directly to all news media organizations around the world 24/7. For more information or to schedule an interview with Temzelides, contact David Ruth, director of national media relations at Rice, at david@rice.edu or 713-348-6327.

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