This article is a historical account of monetary policy in Colombia. Since it is an account of monetary policy in an open economy, the emphasis is on the concepts of the “trilema” of monetary policy, nominal anchor, and monetary regimes. In addition, the account includes the current period of inflation targeting regime, presents the academic antecedents and the definition of inflation targeting, and describes the current characteristics of this regime in Colombia. The main policy implication is that the most important requirement for maintaining price stability is for the Banco de la República to keep the inflation target firm, and, steer interest rates to meet the inflation objective in the face of increases in inflation caused by demand pressure, devaluation and increases in the inflation of food prices.Classification-JEL:E52; E58; F32; F41.
