Monetary System in Colombia

The monetary system in Colombia is a system that controls inflation, payment balance, monetary distribution and credit policy, a board of directors and owners constructs it. The board of director control de actions taken in the in the monetary system, like money creation or loans, the owners or the users are the ones who control the money and are those who move it and work for it. As Inocencio Melendez describes  “En Colombia desde 1923, el Banco de la República, junto con su Junta Directiva es el encargado de la política monetaria nacional, para el control de la inflación, la balanza de pagos, emisión de monedas y la política crediticia.” (Melendez 2013). This means that the board of directors control de actions of “El Banco de la Republica” and prevents the inflation and other factors that are a thread to the economy in Colombia. The “Banco de la Republica” have policies who seek for the good in society. As “El Banco de la Republica” describes the policies: reducer las disparidades regionales en Colombia, efectividad de la politica de prestamista, evitar la inflacion. These policies avoid a disaster in the monetary system in Colombia because they are a well-constructed structure to avoid failing.

The monetary system in Colombia has similarities and differences with the monetary system in the USA. A difference is inflation because Colombia has an inflation percentage of 1.94% of inflation, which has been the lowest in years. The similarity of both monetary system is how that they prevent inflation of their countries, the difference is the system they use to prevent and avoid inflation. The monetary system in Colombia is well organized and developed, with the help of the government and “El Banco de la Republica.”

Citations:

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

Rodriguez Uribe, Ernesto. "Con Un 1,94%, Colombia Registra La Inflación Más Baja De Los Países Ripe." La República. N.p., n.d. Web. 04 Apr. 2014.

Melendez Julio, Inocencio. "Análisis Del Sistema Monetario En Colombia. Inocencio Meléndez Julio." SlideShare. N.p., 09 Mar. 2013. Web. 04 Apr. 2014.

photo credit:http://sistema-monetario.blogspot.com/