The internationally renowned Greek economist

You were born in Greece. Where are your origins?

In Athens, Fokionos Negri Square, Patission Avenue.

What’s your strongest childhood memory?

The summer sea.

You studied economics. Was it something you have been wanting since your early age or did your family motivated you to do it?

My father was a businessman. He died early in his life. I learned the job and made it my profession. Later, I realized that my knowledge on economics was short. I decided to study. After 40 years of education in the universities, I’m still learning today.

You left Greece to study abroad. a) Was it an easy or a difficult decision to make? b) Is it the only decision a young man can make? c) Would you advise a young student facing hard circumstances in Greece to relocate abroad?

  1. a) It was an easy decision for me, as it was impossible to study economics in Greece.
  2. b) No, it’s not the only decision a young man can make. However, it is sad that the academic institutions in Greece have been decadent during the last 40 years. If you’re interested in doing academic research, it is easier to work abroad than in Greece.
  3. c) Of course, I would! But if he relocates abroad as a student, it will be quite important to choose a renowned university. He will learn a lot more as a student abroad than as a student in Greece.

If he goes abroad with a diploma, he can again choose a renowned university in the U.S. or Europe to follow a bachelor or masters program.

If he goes abroad to work as a graduate, he will have the opportunity to learn a lot. In all three cases, if he returns to Greece, the foreign country experience will prove quite helpful.

Your academic career is impressive. You have actually served as a consultant in countries like Greece, Portugal and many more and also as a bank consultant. Please, share a few things about your career with us.

For long years, I dedicated myself to academic research in edge technology areas in particular. The fact that I had studied in internationally renowned universities, like Columbia, Stanford, New York University and Berkeley, was quite helpful. Later, I moved towards applied research, with several countries, banks and enterprises asking my advice on financial issues. At the same time, I started appearing in the mass media talking about financial issues in respect of public interest.

Is the possibility of teaching in a Greek university in your agenda?

No, it’s not in my agenda.

Recently, we witnessed the IMF’s admission for deficient handling. What is your opinion about the financial status and future development of the country?

Greece had no chance to survive for long by continuous borrowing during the years 1981-2009. In 2009-2010, the efficient handling would be to introduce a Greek crisis exit program or an adaptation of IMF’s program taking Greek standards into account. It didn’t happen and though the financial program did well and we finally reached to levels of primary surplus, unemployment rose to record levels and the economy shrunk. For instance, instead of reducing the number of public employees by 100,000 during 2010, sorting those according to necessity and leaving public salaries and pensions intact, Papandreou administration made the bad choice to cut down all salaries and pensions. Moreover, the structural change did never take place. Unfortunately, the Greek society is conservative to the bone, with most conservative opinions being expressed by left parties, and does not accept any structural change that would put out several people.

Do you believe that the Memorandum has set Greece on the right path? What is your advice about the future? What would you change?

The Memorandum was necessary, but it is just a middle stage and not the final destination. If structural change program is implemented in some way, if we manage to reduce the public sector and reach to surplus levels, then we will need a Greek financial planning. The administration has not moved yet to actions and the populism of the opposition sets its financial planning in the theatre of the absurd stage.

What is the ideal planning for Greece? The country needs immediate investments that will create job openings. My advice is to create a treasury/institution of investment the soonest possible.  The primary surplus and the funds from the recent debt cuts should fund that treasury. Moreover, the administration should ask for a grace period of 3-5 years for the interest payment of the Greek debt to other Euro countries. The money raised, €2-5 billion per year, should also fund that treasury and be further invested to create job openings, meaning that they will not cover the state obligations or the extra pension annuities etc. If this treasury is formed and invests €2-5 billion per year in the Greek market, unemployment in Greece will drop to 10-15% from 28% and growth will rise to +3% from -6% in two years time.

Do you visit Greece often? What are your favourite places?

I usually visit Athens, Andros, Santorini, Crete.

What does Greece mean to you?

On one hand, Greece means natural beauty and an impressive five millennium long history. On the other hand, 2013 Greece is robbed from today’s generation that defrauded children’s and grand children’s money and allowed 1.5-2 million illegal immigrants to enter the country, causing huge uncertainty about the future of Greece. Who knows what Greece will be 20 years after?

What is your top question to Greeks, supposing you had the opportunity to get their answer?

Do you understand that the swelling of the public sector during the last 30 years piled up huge debts not only on your shoulders but also on the shoulders of your children and grand children? Do you understand that no German, American nor any other foreigner is responsible for this mess, but you Greeks?

Famous Greeks

The internationally renowned Greek economist

Nicholas Economides is an internationally recognized academic authority on network economics, electronic commerce and public policy. He’s Professor of Economics at the NYU Stern School of Business.

His fields of specialization and research include the economics of networks, especially of telecommunications, computers and information, the economics of technical compatibility and standardization, industrial organization, the structure and organization of financial markets and payment systems, antitrust, application of public policy to network industries, strategic analysis of markets and law and economics.

Professor Economides relocated to London from Greece to receive his Bachelor in Mathematical Economics from the London School of Economics in 1976. Later in 1979 and 1981, he received his MA and PhD in Economics from California’s Berkeley University.

From 1981 until 1988 he has worked as Professor in Columbia University and from 1988 until 1990 in Stanford University and has published more than 100 articles in top academic journals. He is also an editor of the Information Economics and Policy, Netnomics, Quarterly Journal of Electronic Commerce and many more.

His website on the Economics of Networks has been ranked as one of the top four economics sites worldwide by The Economist magazine.

Moreover, he is Executive Director of the NET Institute, a worldwide focal point for research on the economics of network and high technology industries and advisor to the US Federal Trade Commission, the governments of Greece, Ireland, New Zealand and Portugal, the Attorney General of New York State, major telecommunications corporations, a number of the Federal Reserve Banks, the Bank of Greece and major Financial Exchanges of the world.

He also serves on the Advisory Board of the Economist Intelligence Unit.

Read below Nicholas Economides”  interview at ellines.com Team

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