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Traditional models of macroeconomic dynamics are fundamentally incorrect. Thereason lies in a misunderstanding of peculiarities of the analysis ofinfinitesimal quantities. However, even those types of solutions that areenvisaged by the above-mentioned models are nonrepresentative in the sense ofthe reflection of realities. It became obvious that the techniques of thetheory of linear differential equations were insufficient here. Accordingly,the scientists' attention switched to the theory of nonlinear differentialequations. At the same time, balance and, accordingly, the model with matrixproperties are objectively inherent in the economic system. For the reductionof this model to a differential form, there exist rather elementary means thatproved to be unclaimed. Macroeconomic rhetoric - the power of the accelerator,a lag on the part of demand, etc. - accompanied by the use of a lot of abstractcoefficients prevailed. However, there is no organic interrelation betweenmatrix and nonlinear differential equations. On the contrary, it can be saidthat linear theory of integral equations originated in matrix analysis. TheFredholm linear integral equation of the second kind with a parameter-dependentkernel proves to be rather representative with regard to the class of possiblesolutions. It seems that it can be used for the description of any zigzags ofthe economy. The price one has to pay for this is the nontriviality of existingtheory.

The Problem of Modelling of Economic Dynamics in Differential Form