Colombia's monetary policies are formulated by the Junta Monetaria, and banking operations are regulated and supervised by the Superintendencia Bancaria. The Central Bank conducts monetary policy based on behavior of the financial sector, and determines the amount of money in the system and makes other decisions in line with indicators such as inflation and growth of the economy at large.
The amount of money in the economy and the bancary sistem if fractional reserves depends of the depositors and bankers. The central bakn can´t control the amount of money. The central bank is in charge of supervise the banks system, the credit of the country and control the amount of money in the economy. It is necessary to have control over the money in a country to avoid inflation. The FED and The Banco de la República are similar because both are the ones who controls the money in their countries.
Work Cited:
"Dinero Y Sistema Monetario." Dinero Y Sistema Monetario. N.p., n.d. Web. 04 Apr. 2014.
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