Colombia Monetary System

The Monetary System is the legal measure that a country used to control the fabrication and circulation of the money. In Colombia the monetary system is control by the central bank, Banco de la Republica, since 1923. 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 monetary system is responsible for allowing the financial system have more or less deposits. 

The Federal Reserve system is the central bank of United States. The FED and the Banco de la Republica are similar because both of them control the amount of money in the country and it provides the inflation. According to Thomas Jefferson, the central banks should not control all our property, money, because they will take advantage of us, the citizens. “If the American people ever allow private banks to control the issue of their  currency, first by inflation, then by deflation, the banks…will deprive the people of  all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs,” (Thomas Jefferson).

Citation:
”Presidents." The Money Masters. April 4, 2014. http://www.themoneymasters.com/the-money-masters/famous-quotations-on-banking.

"Banco de la Republica." Banco de la Republica. (2013). April 4, 2014. http://www.banrep.gov.co.

"The structure of Federal Reserve System." Federal Reserve Education. April 4, 2014. http://www.federalreserveeducation.org/about-the-fed/structure-and-functions.