Fundamental defect of the macroeconomic thinking as one of the main causes of the crisis endured

TL;DR

This paper critiques fundamental macroeconomic theories, especially Harrod's model, highlighting how their flawed assumptions inherently lead to economic crises and discussing potential damping strategies.

Contribution

It identifies fundamental flaws in macroeconomic thinking, particularly in Harrod's growth model, and links these flaws to the inevitability of economic crises.

Findings

Harrod's model's assumptions lead to crisis inevitability

Fundamental macroeconomic flaws are identified

Damping strategies can mitigate crises

Abstract

The main points of the first section of the article written by S.I. Chernyshov, A.V. Voronin and S.A. Razumovsky arXiv:1003.4382), which deals with the fundamental bases of the macroeconomic theory, have been analyzed. An incorrectness of the Harrod's model of the economical growth in its generally accepted interpretation was specifically considered. The inevitability of the economic crisis has been shown to follow directly from the premises of this model. At the same time there is an opportunity to realize the damping strategies.