ABSTRACT
The paper examines the roles that money and the financial system play at the regional level. We have our analysis based on post-Keynesian monetary theory and, most precisely, on the models developed by Dow. These models demonstrate a self-perpetuating process that tends to amplify initial inequalities at the regional level. The financial behavior of agents tends to generate a process of banking concentration which reinforces regional real disparities.
KEYWORDS:
bank concentration; post-Keynesianism; regional development; public banks