Colombian Monetary System

This system is defined as the set of measures or laws in a country governing the manufacture and circulation of money. The Colombian monetary system is constructed according to the Colombian constitution but is controlled by the central bank or Bank of The Republic. This Central Bank is in charge of several things like: issuing cash, control the amount of money and supervise the banking system. Even though the Constitution is related with this system it gives autonomy to the Bank of The Republic and that leads to the bank not being part of any of the  branches of government. In other words this autonomy is the ability  the bank is given for free analysis of money and to design and apply the policy without interrupting other parts of the government bodies.

Unlike the USA, Colombia´s inflation is more regulated. Inflation can be defined as a sustained increased in the general price level of good and services in an economy. This can be showed with the statistics that presented El Blog Salmón, that says: ¨During 7 years, it increased from 1,000 pesos to 2,000 pesos.¨ The central bank has the obligation to ensure that there is too much money, of any kind, not to fuel inflation because with too much liquidity compared to the needs of the real and financial market would cause the increase of the prices. This would take to having more demand products and services than the regular ones.


MLA Citation:
"Análisis Del Sistema Monetario En Colombia." SlideShare. Inocencio Melendez Julio, 09 Mar. 2013. Web. 04 Apr. 2014.
"Economía Y Empresas. ¿Cómo Funciona El Sistema Monetario?" El Blog Salmón. N.p., n.d. Web. 04 Apr. 2014.