EVOLUTION OF FINANCIAL THEORIES: FROM CLASSICAL APPROACHES TO MODERN CONCEPTS

Abstract

Introduction. The modern development of financial science takes place under the conditions of globalization, digitalization of the economy, and transformation of financial markets. The evolution of financial theories reflects changing approaches to understanding the role of the state, the market, capital, and the behavior of economic agents in the functioning of the financial system. The spread of digital technologies, the development of fintech, cryptocurrencies, and blockchain technologies necessitate the reconsideration of classical and neoclassical financial concepts and the formation of new scientific approaches to financial process management. Under modern conditions, the study of the evolution of financial theories acquires particular importance as a theoretical basis for the development of the financial system and mechanisms for ensuring its stability.

Purpose. The purpose of the study is to analyze the evolution of financial theories from classical economic approaches to modern digital concepts, identify the features of the main financial schools, and assess the impact of globalization, digitalization, and financial crises on the development of financial science.

Materials and Methods. The research materials include: 1) scientific works of domestic and foreign scholars in the fields of financial theory, macroeconomics, behavioral finance, and digital finance; 2) modern studies on the development of financial markets, financial technologies, and cryptocurrencies; 3) concepts of classical, neoclassical, Keynesian, monetarist, and behavioral economic schools.
The following methods were used in the research process: theoretical generalization and comparison (to characterize the main financial theories and identify their features); analysis and synthesis (to assess the transformation of financial concepts under the influence of economic crises and digitalization); a systematic approach (to determine the relationship between financial theories and modern processes of financial system development); and logical generalization (to formulate conclusions).

Results. The article examines the main stages in the development of financial theories and characterizes the features of classical, neoclassical, Keynesian, monetarist, and behavioral approaches to the functioning of the financial system. Changes in views on the role of state regulation in the economy, mechanisms of market equilibrium, and the influence of behavioral factors on financial decision-making are analyzed. Modern financial concepts related to the development of digital finance, fintech, blockchain technologies, and cryptocurrencies are generalized. The main advantages and risks of the digitalization of the financial system are identified, including the acceleration of financial operations, expanded access to financial services, increased cyber risks, and the instability of digital assets. It is substantiated that modern financial science is moving toward a comprehensive analysis of financial processes taking into account psychological, informational, institutional, and technological factors.

Discussion. Further scientific research should focus on studying the mechanisms of digital finance regulation, assessing the impact of artificial intelligence and financial technologies on the stability of financial markets, as well as developing modern models for financial risk management in the digital economy.