Colombian Monetary System

The Colombian monetary system is controlled by an autonomus entity that is related to the goverment and directed by a president and a board of directors. They are the ones who created the money in order to have control about it. One of the main purpose of the Banco Central de Colombia is to have the inflation rate low.  According to administration of the inter nation reserves the Banco Central de Colombia, Al Banco de la República le corresponde administrar las reservas internacionales del país incluyendo el manejo, inversión, depósito de custodia y disposición de los activos de reserve. " (Banco de la Republica, 2013). Its responsibility is to have a stable economy staying focus on the low inflation rate. The Colombian monetary system used to be bases in the gold standar  but in the reform of the constitution in 1991 some aspects change. Today the Colombian monetary system is not based on the gold standard. 


The Colombian monetary system and the Federal Reserve in the United States is similar in the aspect that it works separated of the government. There main objective is to have a stable economy. The federal reserve wants to have a low inflation rate an a low unemployment rate, but this is impossible according to the fisher equation. This equation says that if the inflation goes down the unemployment goes up and vise verse. So there is a paradox in the objective of the federal reserve purpose. 

"Qué Hacemos." Banco De La República (Banco Central De Colombia). N.p., n.d. Web. 04 Apr. 2014.