Analysis of reproduction proportions, to which a number of Russian and foreign economists devoted their works, acquires a special actuality and importance in the conditions of market economy. First of all it is connected with the necessity of reasonable distribution of received income on accumulating and consumption. The solution to this problem is of great theoretical and practical value both on the macro and micro levels.

From the point of view of economic theory, alternative choice between consumption and accumulating is, indeed, the axis around which the economy revolves.

From a practical point of view, any economic entity always faces a dilemma: to spend its income on production expansion or to consume it.

Previously used in the domestic economy solutions to this problem by central regulation of reproduction proportions, mainly through strictly regulated ratio of productivity and wages, as we know, have not yielded positive results. The market economy implies the use of more flexible methods to regulate the main reproduction proportions.

Moreover, the problem is complicated by instability and uncertainty of the economic situation in conditions of inflation.

Issues of reproduction proportions optimization and distribution of newly created value on accumulation and consumption are in the focus of economic science since its appearance. As it is known, the reproductive model of the economy for the first time was built in the middle of the 18th century by F. Quesnay. A big contribution to resolving the issue at the macro level, was made in the 20th years of XX century the Russian economists by N.I.Bukharin, N.D. Kondratev, A. Orleansky, V. Pozdnyakov, V. Starovsky, G.А. Feldman. The most extensive coverage later on, these issues have received in macroeconomic research of P.G. Bunich, V. Kovachev, Y.А. Kronrod, О. Lange, V. Leontiev, V.S. Nemchiniv, А.I. Notkin, К.B.Osokina, А.А.Porokhovsky, S.G.Strumilin and many other scientists.At the micro level this problem is investigated insufficiently. The problems of funds accumulation and consumption formation are not fully developed, and approach to laws of the relationship of productivity and wages and the choice of indicators to assess it are ambiguous.

Accumulation and consumption belong to the categories of the reproduction process and naturally linked with satisfaction of demands. From the point of view of economic theory accumulation is the use of part of the product, to expand production. Accumulation, therefore, is designed to meet the growing needs of the means of production and consumer products.

Accumulation must ensure the unit «production - consumption». If the accumulation is not related to consumption, then there is a block - « production - production», that is, the economic turnover does not meet consumer demand, production starts to be carried out for the sake of production and the balance between production and population's solvent demand is disrupted.

The optimal proportions between productivity and wages, accumulation and consumption allow to expand reproduction, to produce of the necessary quantity of products with the lowest cost of labor and resources and to increase financial motivation.

Carried out studies allow us to draw some conclusions:

• the ratio of productivity and wages is directly proportional to the norm of the surplus product;
• the ratio of productivity and wages in the process of reproduction plays an important role, in particular performs distribution and balance functions in the structure of the pure product;
• to receive in the process of reproduction of the necessary value of the surplus product (norms of the surplus product) and ensure a balanced distribution of the net product, you should manage the ratio of productivity and wages.

In conditions of market economy the value of the specified ratio increases. If wages grow faster than labour productivity, labour cost per unit of production will increase, which, in turn, causes an increase in prices and, consequently, reducing the competitiveness of goods on the market. In addition, the rapid increase of wages against the performance, causes a rise in prices, and becomes one of the main sources of inflation, as noted by both Russian and foreign economists.

Translation by A.V. Gubanova, I.V. Ananeva