91.7 Ann Arbor/Detroit 104.1 Grand Rapids 91.3 Port Huron 89.7 Lansing 91.1 Flint
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

MSU prof says Greek financial crisis should not have big effect on Michigan economy

Steve Carmody
Michigan Radio

A Michigan State University economist says a looming loan default by Greece should not greatly affect Michigan’s economy.

Greece and its European creditors will be discussing a last-minute proposal by Athens for a new two-year rescue deal.

The proposal came just hours before the country's international bailout expires – at which point it will lose access to billions of dollars in European funding.

At midnight, Greece is also set to become the first developed nation not to pay its debts to the International Monetary Fund on time.

The prime minister's office said the deal would "fully cover" his country's fiscal needs, while including a restructuring of debt. And he says his government "until the end will seek a viable solution within the euro."

Charles Ballard is an economist at Michigan State University. 

He says the turmoil in Greece and the potential multi-billion dollar loan default in Puerto Rico should not have a noticeable effect on Michigan’s economy.   

“Only if there is some bigger effect on the global financial markets that it would be expected to have a big problem for Michigan,” says Ballard.

Ballard predicts the expected interest rate increase from the Federal Reserve will have greater effect on Michigan’s economy.  

That increase is expected later this year or early next year. 

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.
Related Content