COLOMBIAN MONETARY SYSTEM

The peso has been the currency of Colombia since years of time, the dollar has been the one from USA. There are a lot of different between the colombian peso and the dollar, the dollar have this sign $ but with onli 1 line and the peso is constructed with two lines. Controlling the GPD growth is definetly the best way to achieve sustained growth rate that would general improve the population quality of life.Instead if  the economy does not control  the procces they most face problems or crisis with the economy. The main policies that the Banco de Republica has is to "governed by an inflation targeting scheme whose purpose is to maintain a low and stable rate of inflation, and achieve output growth in line with the potential capacity of the economy". This help us to understand that the main objectives of monetary policy is related to the goal of price stability with maximum sustainable growth and employment with the citizens. If all of the goal are in a good range the objective are totally compatible. 

The decision that influence the economy are based up on analysis of the current state and the goals of the economy. In my opinion this is a great way,because this help clearly the people incharge of the systems to know if things are going totally well or not. There are very high expectations of risk that the inflation deviates from the target in the time horizon in which this policy operates. Finalizing the monetary system is great because how you understand it contributes to ensure prices and mantain them in a good way so people are no more getting affected. The opposite side of the situation is when it appers a big increment because it would apper definetly extra expenses that would directly affect the prices. 

This link ( https://www.youtube.com/watch?v=g4pFgbfSHDs) is a great video that I watch and help me understand how people moves around the economic enviroment,and how things are better to them and they realize it.