Abstract

The article examines Bresser-Pereira’s view on distribution of income, presented
in his book Profit, Accumulation and Crisis, regarding the link between the rate of profit
and the rate of interest. The author presents an alternative approach based on the recent
contributions made by Carlo Panico and Massimo Pivetti, both from the University of
Naples. Panico’s model emphasizes both, the risk-return elements and the “storage of value”
aspect, another important function performed by money, which affect the distribution
of income industrial capitalists, workers and bankers. The author also discusses the price
formation methodology when technical change is presented, claiming that Sraffa’s model is
more adequate to understand the evolution of the rate of profit in the long run.

JEL Classification: B24; B31.