Agustín Carstens
Agustín Carstens | |
|---|---|
| Born | June 9, 1958 Mexico City, Mexico |
| Occupation | Economist |
| Known for | General manager of the Bank for International Settlements; former governor of the Bank of Mexico; former Secretary of Finance of Mexico |
Agustín Guillermo Carstens Carstens (born 9 June 1958 in Mexico City) is a distinguished Mexican economist who has been serving as the general manager of the Bank for International Settlements since 1 December 2017, with his term extending until 30 June 2025. Previously, he held the position of governor at the Bank of Mexico from 2010 through 2017. In 2011, Carstens emerged as one of the final contenders alongside Christine Lagarde for the role of managing director at the International Monetary Fund.
His career includes significant roles such as Secretary of Finance under President Felipe Calderón from 2006 to 2009, deputy managing director at the IMF between 2003 and 2006, and treasurer at the Bank of Mexico. Notably, in 2011, he was recognized by Bloomberg Markets as one of their 50 Most Influential figures.
Carstens commenced his five-year leadership at the Bank for International Settlements in Basel, Switzerland, on December 1, 2017.
Early years
Carstens obtained his undergraduate degree in economics from the Mexico Autonomous Institute of Technology (ITAM). After completing an internship at the Bank of Mexico, he earned a scholarship that enabled him to pursue graduate studies at the University of Chicago, where he completed a master's degree in 1983 followed by a doctorate in economics in 1985. His doctoral advisor was Michael Mussa, who previously served as economic counselor and director of research at the International Monetary Fund.
He is married to Catherine Mansell, an American economist and author who writes under the pseudonym C. M. Mayo.
In the mid-1980s, Carstens returned to Mexico and resumed his work with the Bank of Mexico. Before reaching thirty years old, he was appointed treasurer responsible for managing the country’s national reserves. Advancing through various positions during the early 1990s, he became chief of staff to chairman Miguel Mancera and subsequently served as Director General of Economic Research under Governor Guillermo Ortiz Martínez. In this capacity, he contributed to shaping economic policy responses following both the Tequila Crisis and the Russian default crisis. Alongside Deputy Governor Francisco Gil Díaz, he co-authored an analysis attributing much of the Mexican crisis to a largely preventable peso run driven by external pressures and political circumstances.
International Monetary Fund
After an extensive period at the Bank of Mexico, Carstens transitioned to the IMF, where he held the post of deputy managing director from August 1, 2003, until October 16, 2006.
He departed from the IMF to lead economic policy coordination for president-elect Felipe Calderón, who appointed him as secretary of finance shortly after assuming office.
Secretary of Finance
On March 26, 2007, Carstens was named chairman of the joint World Bank/IMF Development Committee—a position generally occupied by finance ministers from developing nations.
During his tenure as secretary, he implemented a strategic move to hedge Mexico’s oil revenues for 2009 against potential price drops, resulting in an $8 billion gain for the government.
In response to protests sparked by rising food prices in 2007, Carstens perceived elevated food costs as an opportunity to encourage increased investment within the agricultural sector.
Bank of Mexico
On 9 December 2009, President Felipe Calderón appointed Carstens as the head of the Bank of Mexico, taking over from Guillermo Ortiz Martínez, who had successfully reduced inflation from double-digit levels down to 4 percent.[1][2]
The Senate of Mexico officially approved his nomination on 15 December 2009, granting him strong backing with 81 affirmative votes.[3]
Economic views
Carstens highlights five primary characteristics that differentiate business cycles in emerging markets from those experienced by developed economies:
- A close correlation with the economic fluctuations of industrialized countries
- Increased volatility in economic activity
- Additional sources of instability, including price shocks
- Negative impacts arising from swift capital flight facilitated by global corporate integration
- Exposure linked to exchange-rate policy frameworks
He recommends that emerging market economies should:
- Embrace more liberalized trade and investment policies
- Permit interest rates to be determined by market forces
- Reinforce banking systems to better absorb macroeconomic disturbances
- Pursue structural reforms such as granting central banks independence, advancing privatization, deregulating labor markets, and decreasing dependence on foreign capital
Other activities
Carstens is a member of the International Advisory Board for the Global Finance & Technology Network.