Finance Transformation and digitalization of the transport sector

The paper investigates financial innovations as simultaneously an outcome and a means of economic development and development of transportation means and system since growth of economy necessitates innovative means and facilities allowing for lower costs of carrying cargoes to new areas and markets. Most important innovations were those related to invention of ever new types of money to resolve a major economic problem of deficient funds necessary for development of trade, markets and transportation. Classification of financial innovation is intricately related to the functions money and financial instruments perform in economy and these were developed with the development of the latter two. Beginning with invention of coins to more sophisticated forms money has been a core value and function in economic system and causes emergence of financial systems and markets with modern forms of money and financial instruments providing for payments, lending, investment, pricing assets and financial instruments, risk management and pricing risk instruments etc. In modern mixed economies regulation of currencies, money supply and national financial systems, also regarded innovative developments, allows governments to perform targeted intervention in national economy the outcomes and economic and social consequences of which, as demonstrated by the example of Russian economy and economic policies, may appear ambiguous and controversial.