Financial repression and the Latin American finance pattern

This article presents a critique of the theory of financial repression, in place of which it offers an alternative approach to development financing, based mainly on the Keynesian tradition. The concept of financial repression refers to the situation of a market suffering from institutional obstacles, both in terms of economic policy and adm inistrative aspects, which prevent it from attaining an equilibrium position and thus jeopardize the rationality of the resource allocation process.