Money in modern economics: An institutional analysis of the scientific category evolution

Abstract

Subject. The article addresses money in modern economics. Objectives. The aim is to examine the evolution of forms and functions of money, make a comparative analysis of views of various economic schools on the essence and content of the phenomenon of money, define the most relevant scientific approach enabling to adequately interpret the “money” category in the context of modern realities. Methods. We performed a comparative analysis of economic and theoretical approaches to the interpretation, functions, and evolution of money. Results. The paper demonstrates boundaries of the difference between electronic and digital money, presents our own vision of the "cryptocurrency" category, defines the affiliation of certain functions of money to the corresponding types. When analyzing money from the angle of institutional economic theory, we note that the search for tools to minimize transaction costs in transactions leads to the evolution of forms of money and the emergence of new forms and sub-types, in particular, cryptocurrencies. As a result, we show the transformation of a number of functions of money, and formulate our own definition of the institution of money. Conclusions. The formalization of the bearer of the institution of money comes from the transformation of certain monetary functions. The main results and conclusions of the article can be used in scientific and pedagogical activities, when considering issues about the essence of money.