Subject. This article analyzes the fundamental differences between the Modern Monetary Theory (MMT) and mainstream economic theory. It focuses on the opposing approaches to fiscal policy, monetary policy, inflation, and the role of the State in the economy. Objectives. The article aims to identify and analyze the key differences between the MMT and mainstream economics, as well as rethink traditional concepts such as government financing and the relationship between fiscal and monetary authorities. Methods. For the study, I used a comparative analysis. Results. The article identifies the key differences between the approaches of the MMT and mainstream economics. The article also highlights the weaknesses and contentious issues of the MMT, such as the politicization of economic policy and the impact of budget deficits on the external sector. Conclusions and Relevance. Applying alternative approaches in the face of global economic challenges, especially in the context of developing countries, is highly important. The results obtained may be useful for further study and development of effective economic strategies.
Keywords: modern monetary theory, MMT, macroeconomic policy, fiscal policy, sovereign state
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