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Press Release

Mike Laffin

For immediate release:
October 28, 2002

Carnegie Mellon Dedicates Gailliot Center for Public Policy
Center recognized for Joint Economic Committee work, analysis of Argentine economic crisis

Pittsburgh—Carnegie Mellon University today [Oct. 23] dedicated The Gailliot Center for Public Policy at the Graduate School of Industrial Administration. The Gailliot Center is a research institute focused on developing market-based solutions to economic policy problems. It is directed by Adam Lerrick and chaired by Allan H. Meltzer, renowned political economists at Carnegie Mellon's business school.

The Gailliot Center serves as the international economic policy adviser to the Joint Economic Committee (JEC) of the U.S. Congress. In addition, Drs. Lerrick and Meltzer serve as international economic policy advisors to the Majority Leader of the House of Representatives. The center also is recognized worldwide as a leading authority on international financial institutions, global economic policy, sovereign debt restructuring and development aid. "The center's goal is to develop original and pragmatic solutions to public policy problems that limit government intervention and allow markets and the private sector to evolve and adapt," said Lerrick.

Initially established in 1973, the center has been reinvigorated and refocused by a commitment of $5 million from Henry J. Gailliot, former Federated Investors senior executive and Carnegie Mellon trustee, alumnus and longtime benefactor. This support has been used to endow the center and give it permanent standing. "We have created something that I am extremely proud of," said Gailliot. "Everyone involved with the center maintains a common belief: markets provide better answers than regulation or command and control."

According to Carnegie Mellon President Jared L. Cohon, "Dr. Gailliot embodies the mission and spirit of Carnegie Mellon. His success in business, his generosity and commitment to his alma mater and his contributions to society have set the standard for all of us to replicate. We are very proud of the work that Henry, Allan Meltzer and Adam Lerrick have been able to achieve through the Center and wish them continued success."

In its role as advisor to the JEC, the center produces "Quarterly International Economics Reports" that are distributed to members of Congress and published by the JEC. Several of the reports have been supported by international news stories and opinion-editorials, authored by Meltzer and/or Lerrick, in London's Financial Times and The Wall Street Journal. Another measure of the center's impact is the implementation of its research as policy. President George W. Bush has highlighted the center's grant-based aid proposal as a cornerstone of the administration's international development strategy.

The Gailliot Center also was the first to be invited to consult with Argentina's new leaders in late 2001 on economic plans to address the country's crisis. Additionally, a simulation of a sovereign default and debt restructuring was organized last November in collaboration with Carnegie Mellon's Financial Analysis and Securities Training Laboratory. The exercise was enacted by 14 of the largest institutional investors in emerging market bonds while senior officials from the White House, the International Monetary Fund, the German and French Ministries of Finance, the Inter-American Development Bank and Argentina observed. The results of the simulation confirmed the center's theory regarding a framework for orderly debt restructuring.

Adam Lerrick is the Friends of Allan H. Meltzer Chair in Economics at the Graduate School of Industrial Administration at Carnegie Mellon. He was the senior advisor to the chairman of the International Financial Institution Advisory Commission (also known as the Meltzer Commission) of the U.S. government. Lerrick's opinions appear prominently in financial news around the world. Formerly, he was the head of product development at Credit Suisse First Boston and the head of product development for international capital markets at Salomon Brothers. Lerrick was awarded a Ph.D. in economics from the Massachusetts Institute of Technology where he was named Institute Scholar with concentration in international and monetary economics. He graduated from Princeton University with highest honors and was a member of Phi Beta Kappa.

Allan H. Meltzer is The Allan H. Meltzer University Professor of Political Economy at Carnegie Mellon's Graduate School of Industrial Administration where he has taught since 1957. Meltzer is a co-founder and former co-chair of the Shadow Open Market Committee. He was a member of the President's Economic Policy Advisory Board and an acting member of the Council of Economic Advisers (1988-89). He was the chairman of the International Financial Institution Advisory Commission (also known as the Meltzer Commission) of the U.S. government. Meltzer is a Distinguished Fellow at the American Economic Association and a Visiting Scholar at the American Enterprise Institute for Public Policy Research in Washington, D.C. He has served as advisor to central banks and governments and was honorary advisor to the Bank of Japan from 1986 to 2002. His bibliography includes more than 20 books and monographs including the anticipated "A History of the Federal Reserve, Volume 1: 1913-1951" due to be published this month. He has authored more than 300 articles in academic journals and finance and economic publications.

Henry J. Gailliot is a retired senior executive of Federated Investors, Inc., one of the largest fund managers in the United States. During his 25-year career at Federated, he was responsible for development of the firm's economic and market outlook and served on Federated's executive committee and board. Gailliot graduated from Carnegie Institute of Technology with a bachelor of science in industrial management and a master's degree in industrial administration. He earned a Ph.D. in economics from Carnegie Mellon and was awarded National Science Foundation and Federal Reserve fellowships. Gailliot's board memberships include: life trustee and executive committee member, Carnegie Mellon; trustee of The Carnegie Institute, Carnegie Museum of Art and the Pittsburgh Children's Museum. Previously, Gailliot served on boards of the University of Pittsburgh's School of Library and Information Science, Catholic University of America and the Rehabilitation Institute of Pittsburgh.


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