Currency, financing, financial system and uneven regional development trajectories: the post-Keynesian perspective

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.

JEL: Classification: G28; G21; E12; R19.