THE THEORY OF "FREE MONEY" BY S.GESELL AND ITS EVOLUTION IN MODERN ECONOMIC SCIENCE
Abstract
Purpose. The article aims to identify the feasibility and effectiveness of the theory of "free money" S.Gesell, using scientific and empirical (experimental) experience of its application. Methodology of research. The methodical base of the research are: a historical method (in the study of the formation and development of the theory of «free money», proposed by S.Gesell and in determining its evolution in modern economic science); empirical method (in detection of experiments about using scientific theory in practice), the method of induction (in the study of empirical data and in the reasoning of conclusions on macro-, microeconomic and social results of the local currency): method generalizations and classifications (in classification of the local currencies): comparison method (in the study of modern features of the local currencies) and other methods of economic research. Findings. Author deduces the evolution and analyzes the main ideas of the economic theories that justify the feasibility of the using of local currencies in business practice. There is the scientific biography of the German-Argentine economist S.Gesell. Also author reveals historical, scientific and economic prerequisites for the formation of his theory of «free money». There is analyzed world experience of implementing the theory of «free money» as an alternative way to overcome the crisis. Experiments in the article allow to describe the current understanding of the theory of «free money» S.Gesell and to establish the impossibility of its using in Ukraine due to the economic crisis. Author reveals that complementary local currencies will able to become the one of the protective, stabilizing instruments to support the local economy and stimulate the development of the social sphere. There is established that the introduction of the local currencies’ systems never accompanied by separatist movements or moods, and vice versa – contributed the formation of strong horizontal links within the local community of people, who live and work within a specific territory. Originality. Author reveals that the ambiguous assessment of the causes and particularly the economic effects of implementing of such currencies make the topic especially relevant. There are described the features of functioning of payment systems based on the use of local currencies and the functions, whose analysis will help to resolve issues like – whether it is useful the implementation of regional currencies in the Ukrainian economy. Practical value. Received results of research help to identify the effectiveness and usefulness of the theory of «free money» S.Gesell. They are able to be used for substantiate financial strategy development.
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