SWITCHOVER MODE OF REPRODUCTION AND THE PROBLEM OF COORDINATION

The proposed version of macroeconomic theory of capital reproduction is related to thethesis that the dynamicsof the economy are caused by the change in generations of capital and there is a problem of coordinationbetween these generations. This paper discusses the so-called “switchover mode of reproduction”. Asshown by the mathematical model, a coordinated growth is possible when the social and economic interestsare agreed between the labor and the capital, as well as under a monetary policy that stimulates such growth.An uncoordinated growth poses a threat of economic crisis.