The article dwells upon scientific heritage of the prominent Ukrainian scholar M.I. Tugan-Baranovsky, in particular, the origins and preferences of paper money in the economic system. Author studies evolution of money during the dynamic development of capitalism in European countries. The scientist’s contribution to explanation of paper money value fluctuation and inflation (deflation) is analyzed.
M.I. Tugan-Baranovsky’s conjunctival theory of money has been considered. It was determined that this theory allowed to expand scientific toolkit for money value analysis, as well as its impact on economic system.
The article emphasizes key innovative ideas of M.I. Tugan-Baranovsky in the context of scientific study of financial and monetary systems, including credit relations and banking system functioning; exchange rates in terms of international trade development and their government regulation; financial market and its relationship with a real economy.
Finally, the study concludes that M.I. Tugan-Baranovsky’s heritage and his contribution to the theory of money have become the world’ scientific attainment and influenced different areas of modern economic thought, including Keynesianism and Monetarism.
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