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04/10/2015 12:16 PM

By Lindsay Anderson

Western Illinois University Economics Professor Dr. William J. Polley discussed the nature of debt crises as the inaugural speaker for the Robert S. Eckley International Lectureship Series.

The lecture was presented by the and the and was attended by °®¶¹´«Ã½ÊÓƵ faculty and students, as well as community members.

“I attended the lecture because William (Bill) use to teach here at °®¶¹´«Ã½ÊÓƵ and is a good friend,”  Instructor said. “His lecture provided nice insight on austerity versus stimulus issues.”

Polley noted how sovereign debt could quickly escalate into a crisis. Citing papers and pages from the book “This Time is Different” by Carmen M. Reinhart and Kenneth S. Rogoff (2009), Polley discussed the early history of external debt defaults, inflation, and debt relation in history.

He said that Christina Romer, chair of the White House Council of Economic Advisers, used an analogy of treating someone injured in a car accident.

“They usually feel worse after rate treatment than they did before the accident, but that’s because of the accident, not the treatment,” Polley said.

Because of this, the economic situation in Greece is significant because it’s the first time the European Union as a whole is in danger.

Polley concluded his lecture citing that sovereign debt crises are not new, but the situation in Greece represents the largest threat to the EU since its inception. He also remarked that the lack of fiscal policy coordination is a hindrance to the EU, stimulus in crisis and austerity in recovery.

“Regardless,” Polley said. “Expectations matter.”

Economics faculty in attendance had much praise for the lecture.

“Polley presented very interesting ideas about stimulus and austerity through the business cycle,” said Economics Professor Dr. .  “His ideas on the Euro area (Greece and Germany) were also fascinating.”

“What he presented was relevant and important to the discussion of policy during a financial crisis,” said Associate Professor of Economics Dr. .

“We are very appreciative of Polley’s great contribution in not only his presentation in this lectureship, but to our Economics department and the College, as well,” Economics Department Chair and Professor Dr. said.

Bill Polley joined the faculty of the Department of Economics (now the Department of Economics and Decision Sciences) at Western Illinois University in 2005. He served as chair of the graduate committee and graduate adviser for the department from 2008 through 2014. In 2012, he received the college’s award for Excellence in University/Community Service. Polley teaches macroeconomics at the principles, intermediate, and graduate levels.

Polley also taught at °®¶¹´«Ã½ÊÓƵ as an Assistant Professor of Economics from 1999 to 2005.

Dr. Robert S. Eckley was a 1942 °®¶¹´«Ã½ÊÓƵ graduate who became the president of Illinois Wesleyan University. Eckley received the Phi Kappa Phi Alumni Award from °®¶¹´«Ã½ÊÓƵ in 1966 and the from °®¶¹´«Ã½ÊÓƵ in 1972.

Future lecturers in this series will speak on international economics.