February 11, 2010
Charles Collyns Confirmed as Assistant Secretary for International Finance
WASHINGTON – Charles Collyns was confirmed today by the United States Senate to serve as the U.S. Department of the Treasury's Assistant Secretary for International Finance. In this position, Collyns is responsible for leading Treasury's work on international monetary policy, international financial institutions, coordination with the G-7/G-8 and G-20, and regional and bilateral economic issues.
"Charles's work in the international arena will play a central role in Treasury's efforts to achieve stronger growth here at home. I welcome him to Treasury and look forward to working with him on this incredibly robust agenda," said Treasury Secretary Tim Geithner.
Collyns served as the Deputy Director of the Research Department at the International Monetary Fund (IMF), where he led the team responsible for preparing the "World Economic Outlook." Prior to joining the Research Department in 2006, he has held a range of positions at the IMF, including being responsible for the organization's work on Japan from 1997–2001, on the United States from 2001–2003, and on Brazil from 2004–2006.
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Collyns is a leading expert on economics who has been a power player in the world of global finance for more than 25 years. As assistant secretary for international finance, Collyns will be tasked with crafting U.S. policy on a wide range of economic issues, including monetary policy, international debt management and trade relations.
Collyns comes to Treasury from the International Monetary Fund, where he witnessed economic unrest firsthand in a series of international policy positions. His intimate knowledge of historic financial crises will be an asset as he helps chart a way forward for the U.S. economy and its global partners.
Collyns' parents emigrated to the United States from England, and they made sure all of their six sons bore the imprint of their adopted homeland. They named each of their children after an American leader they admired, giving Charles Collyns the middle name "Adlai" after the Democrat and two-time presidential nominee Adlai Stevenson.
Collyns headed across the pond when it came time to receive a college education. He completed his undergraduate studies at England's Cambridge University and went on to earn a Ph.D. from the prestigious economics program at Oxford University.
IMF Career
Collyns took his expertise in economics to the International Monetary Fund in Washington, where he would work for more than 25 years on financial policy challenges ranging from the Latin American debt crisis of the 1980s to the Asian meltdown of the 1990s.
In 2006, Collyns was appointed the IMF's deputy director of research and placed in charge of the team that produces the "World Economic Outlook," a closely-watched annual report on the state of the global economy.
Collyns is clearly well-versed in the research literature on economic shocks in the modern era. He co-authored and edited a number of books on the topic while at the IMF, including "Post Bubble Blues—How Japan Responded to Asset Price Collapse," "Managing Financial Crises—Recent Experience and Lessons for Latin America," and "Stabilization and Reform in Latin America—A Macroeconomic Perspective on the Experience Since the Early 1990s."
As Treasury assistant secretary for international finance, Collyns will be working closely with America's foreign allies—particularly members of the G-20—to develop a new framework for growth in the global economy.
China
The sometimes-strained economic relationship between the U.S. and China has emerged as the central challenge for international policymakers at Treasury. Observers have accused China of artificially deflating the value of its currency to keep its exports at rock-bottom rates. The explosive growth of Chinese exports has turned the country into an economic powerhouse, but it has also contributed to a perpetual trade deficit in the U.S.
Any attempts by the U.S. to deal with China's currency situation are complicated by the fact that the country is the single largest foreign holder of U.S. debt. As of November 2009, China held nearly $800 billion worth of U.S. securities and bonds.Treasury Department's Web site(1)Treasury Department's Web site
Collyns was questioned on his views about China's currency during his Senate confirmation hearing in late 2009. He asserted the need for a concerted effort to persuade China to shift its fiscal policy in a new direction.
"If the Chinese maintain [current policies] it will block the adjustment needed of the global economy, the adjustment that China needs to make to shift away from export leg growth toward domestic leg growth," Collyns said.Testimony, Senate Finance Committee, November 20, 2009(2)Testimony, Senate Finance Committee, November 20, 2009
Economic Crisis Management
Collyns laid out his views on the proper response to an economic crisis in an article for F&D, the quarterly magazine of the IMF. In the piece, Collyns strongly advocated for direct government intervention during times of great economic upheaval. "The first and most important lesson from every financial crisis since the Great Depression is to act early, to act aggressively, and to act comprehensively to deal with financial strains," Collyns wrote.Collyns, Charles, F&D, "The crisis through the lens of history," December 2008(3)Collyns, Charles, F&D, "The crisis through the lens of history," December 2008
Collyns asserted that fiscal stimulus is necessary to combat economic downturns, but cautioned that underlying problems in a financial system must be dealt with in order for a full recovery to occur. Citing examples from history, Collyns also asserted the need for global policy solutions to keep financial problems contained. "The bottom line is that by learning lessons from experience, we can avoid the worst of the past," Collyns wrote.
http://www.whorunsgov.com/Profiles/Charles_Collyns
http://www.treas.gov/press/releases/tg545.htm
