Basic principles of new reproduction theory

The article studies a switching mode of reproduction in machine-building complex, which performs two production programs: production of fixed capital for itself and production of non-productive consumption. It develops an abstract model of the switching mode of reproduction and formulates its main features. The essence of the features is that the cost of the old capital is not transferred to the product, but instead there is a new value, encased in the new fixed capital. There are two consequences of this features: accumulated depreciation is converted to cash income in the period when the program of production of fixed capital for machine-building complex is performed; the fact that the programs are equally preferred leads to the equation of the growth rate of monetary income in different subperiods of the switching mode. The article discovers previously poorly observed phenomena: the phenomenon of impossibility of a rational consumer behavior and the phenomenon of compression of the money supply by banks serving the real economy.