ABSTRACT
Whether we are concerned with problems of aggregation, valuation of capital or with measuring technical progress, we have been able to appraise the importance of the special case in which the economy grows evenly. More generally, the theory of growth centres around the concept of balanced growth just as traditional macroeconomic theory used the notion of equilibrium as a reference-point. For an equilibrium framework has been substituted one of balanced growth, obtained by a simple transposition of the concepts. This shift in the problem framework corresponds to the distinction between statics and dynamics in Harrod's sense;1 for whom indeed dynamics does not mainly represent a change in the method of analysis, but 'a new method of approach - indeed, a mental revolution.'
