The Governor of Banco de México delivered a conference and participated in a panel during an event organized by EGADE Business School and the Undergraduate Business School at Tec de Monterrey.
By JOSÉ ÁNGEL DE LA PAZ | EGADE BUSINESS SCHOOL
The economic and financial effects of the shocks stemming from COVID-19 have been significant and markedly different from those corresponding to previous crises or recessions, according to the governor of Banco de México, Alejandro Díaz de León.
"In 2021, the pandemic has implied challenges that were different from those faced in 2020," he said.
The central banker delivered the keynote address "National Economic Forecast" on October 28, at a summit for Tec21 Model formative partners in Querétaro, organized by EGADE Business School and the Undergraduate Business School at Tecnológico de Monterrey School of Business.
Díaz de León went on to explain that, owing to the pandemic, the global economy progressed from the total and partial closure of activities to a scenario of vigorous expansion of spending and a shift from spending on the consumption of services towards goods, especially in advanced economies.
"This has produced major bottlenecks in production and inflationary pressures worldwide. These are transferred to internal inflation through increases in the prices of tradable goods and diverse costs of production, transportation, and distribution inputs," he commented.
Regarding the challenges of the current circumstances, he stressed that a global environment of higher growth and inflationary pressures has been consolidated in the past few months.
"While these are expected to be transitory, they pose greater risks to price formation, especially in emerging economies," he said.
Among the final considerations of his conference, the head of Banxico emphasized the following:
- Global risks include those associated with the pandemic, inflationary pressures, and monetary and financial conditions adjustments.
- Even though the shocks that have affected inflation are expected to be transitory, given the diversity, magnitude, and extended horizon of such effect, they may imply a risk for price formation and inflation expectations.
- The Governing Board will determine a monetary stance that is at all times consistent with the orderly and sustained convergence of inflation to the target of 3% in the period in which the monetary policy operates, fostering a suitable adjustment of the economy and financial markets.
- The need to reinforce institutional and structural elements that influence capital accumulation and productivity.
After his conference, Díaz de León participated in a panel with Paulina Campos Villaseñor, Vice-President of Integrity and Compliance at Tec de Monterrey, and Carlos Rodrigo Lever Guzmán, Dean of the Mexico City Region of the School of Social Sciences and Government.
QUERÉTARO FORMATIVE PARTNERS SUMMIT
The summit, which took place virtually, started with messages from Mauricio Kuri González, Governor of the State of Querétaro; Pascual Alcocer Alcocer, Vice-President of the Central-Southern Region and General Director of Campus Querétaro, Tecnológico de Monterrey, and Osmar Zavaleta Vázquez, Interim Dean of EGADE Business School.
Apart from the conference and panel offered by Díaz de León, the event included a panel for formative partners, with the participation of Guillermo Stankiewicz, CEO of Fiesta Americana Puebla; Johanna Flórez Restrepo, Talent Acquisition Manager at Quala México; Eduardo Moreno Yta, CEO of Mexican Honey & Bee Company; and Leticia Treviño Prado, Coordinating Manager at AlphaCare.
In addition, the Tec21 Model formative partners received awards during the closure, led by Jaime Martínez Bowness, Director of EGADE Business School, Mexico City site. Watch the initial messages and the address and panel offered by Díaz de León here.