Inflation factors in Colombia (1986-2006)

Abstract

Last decade Colombia have generated policies decided to reduce the inflation, presenting rates of one to two digits by means of different policies adopted by the Banco de la República framed inside Monetary Policy; one of this is goal of the “Inflación Objetivo” and others. Is for that reason that this investigation wants to demonstrate that Exchange Policy in Colombia and other variables as the increase of payment means, affected the goal of “Inflación Objetivo” proposed by the Banco de la República during the period 1996-2005. For this intention it fulfilled an analysis of the different exchange systems that has had the country, through a theoretical revision, finding as principal results that when exchange rate is very low and there are increases in the monetary base, inflation has a rise tendency, also between the principles determinants of food prices are the costs generated by climatic problems.