La política monetaria y la distribución funcional del ingreso: lo que usted quiso saber y no se atrevió a preguntar

The aim of this paper is to present an alternative analysis of how monetary policy operates and its effects on functional income distribution in Colombia. The starting point is the assumptions of the endogenous theory of money. This paper considers that inflation is the result of the distributive conflict between owners of real or financial wealth and labor. When the Central Bank acts to regulate the conflict inflationary (or better distributive) may adopt a policy of neutrality (status quo) or go the way of a skewed policy against any of the income earners. In other words, you can be the 'excluded middle ' or be part of the inflationary contest between wages, profits, interest and rents. That's the real dilemma for monetary policy. Monetary policies are not neutral nor in the short or long period. Inflation is an indicator of distributive tension between the interests of different social classes in any monetary production economy. Hence, the institutional arrangement for monetary policy determines the role of the central bank in favor or against any of the agents in conflict. In Colombia , the decisions of the Board of the Bank of the Republic have moved away from the just rule of the interest rate , ie , their effects have not been neutral , however , clearly promoted a regressive pattern of income distribution in favor of the holders of wealth.