Shifting Mode of Reproduction and Coordination Problem

Abstract:

The proposed version of the macroeconomic theory of capital reproduction is associated with the provisions that the dynamics of the economy going through the change generation of capital and that there is a problem of coordination between the different generations of capital. We consider the so-called shifting mode of reproduction. The mathematic model showed that a coordinated growth is possible if social and economic interests between capital and labor are agreed, and if monetary policy stimulates this growth. Uncoordinated growth creates a threat the economic crisis.