On Bauer Business Focus — A conversation on the Eurozone crisis with Andrew Schneider, business reporter for KUHF 88.7 FM.
For the past two years, the 17 countries that comprise the Eurozone have been struggling to find economic stability with no apparent end in sight.
Craig Pirrong, a finance professor at the C. T. Bauer College of Business, stopped by Bauer Business Focus recently to discuss how the Eurozone crisis will affect the European and American economy.
“Things can jump really quickly, and so you’re going to have these spasms of activity and potential for crisis, with periods of time of relative quiet with the nature of this particular issue,” Pirrong said. “There are so many dimensions and actors involved that trying to figure out the interactions between all those things and how that’s going to play out is a very difficult task.”
With an economic crisis looming for the Eurozone, he added, not only will Europeans be hit hard, but the fallout may affect the United States’ already fragile economy.
“Europe is already going into a recession and that would have a direct impact on the United States and a lower demand for our goods. That would be bad for our economy, but in addition, it would cause difficulties for some United States financial institutions. We are already having banks that are reluctant to lend and that would make it even more so. It would definitely be adverse development of the United States economy.”
Click here to hear the full interview.