Jung theory builds upon Freud's model which provides "the causal point of view" (p. 31) and adds to it "the final standpoint" (p. 31) where dreams are seen as offering a parable or similie of conscious life. This causal model "conceils" universal psychological interests, desires or cravings while the final model "teaches" where "images in a dream each have instrinsic value of their own" (p. 32)
He states that:
"Just as the body bears the traces of its phylogenetic development, so also does the human mind. ... the possibility that figurative language of dreams is a survival from an archaic mode of thought." (p. 34)
As such "to interpret a dream correctly we need a thorough knowledge of the conscious situation at that moment, because the dream contains its unconscious complement, that is the material which the conscious situation has constellated in the unconscious" (pp. 34-35)
While wanting to avoid classification of dreams into essential types, Jung suggests that dreams can be of four various types: Compensatory, Prospective, Reductive, or Reactive.
Compensatory dreams are the residue of conscious situations (daily living) that lead to the "constellating" of the unconscious complements. Here events from the previous day are blending into the dreamscape.
Prospective dreams are those working through or anticipating in the unconscious possible future conscious achievements. These may be simple problem solvings or prophecies, but he cautions us not to read too much into these.
Reductive dreams involve the "[n]egatively compensating or reductive function" (p. 43) where they tend to invovle "disintegration, to disovle, to devalue even to destroy and demolish" (p. 44) past features and structures of the self .
Reactive dreams take their content and forms from a response to conscious (everyday) events of the past such as trauma or deeply felt expereinces.