Carnegie Mellon Dedicates Gailliot Center for Public Policy at Business School
Center Recognized as a Worldwide Leading Authority on Economic Policy
Carnegie Mellon has dedicated its Gailliot Center for Public Policy, a worldwide leading research institute focused on developing market-based solutions to economic policy problems, at its Graduate School of Industrial Administration.
The center, initially established in 1973, has been reinvigorated and refocused by a commitment of $5 million from Henry J. Gailliot, former Federated Investors senior executive, Carnegie Mellon trustee, alumnus and longtime benefactor.
The Gailliot Center, directed by Adam Lerrick, the Friends of Allan H. Meltzer Chair in Economics, and chaired by Allan H. Meltzer, University Professor of Political Economy, serves as the international economic policy adviser to the Joint Economic Committee (JEC) of the U.S. Congress. In addition, Lerrick and Meltzer serve as international economic policy advisers 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.
Gailliot's 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."
"Dr. Gailliot embodies the mission and spirit of Carnegie Mellon," said President Jared Cohon. "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 adviser 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.