Definition of Political Economy
It is an interdisciplinary division of the social sciences that concentrates on the interrelationships amongst governments, public policy, and individuals. A political economist studies how any economic theory, such as socialism, communism, and capitalism function in the real world.
Basically, economic theories are nothing but a methodology that is used as a means for instructing the dissemination of a finite amount of resources in a method wherein it proves to be beneficial for the greatest number of individuals.
“Political economy” is a term which is still commonly used to explain any government-related policy that can impact economically. In a broader sense, political economy used to be the common term for the area that we now call economics.
Decoding Political Economy
The study of political economy can be approached in the following ways:
*1. New Political Economy: * This approach doesn’t consider a political theory as a framework that needs to be analyzed. On the contrary, it is inspected as a set of beliefs and actions. This approach seeks to make explicit assumptions, which lead to political debates about the preferences of society.
2. Interdisciplinary Studies: This approach draws upon economics, political science, and sociology to determine how an economic system, a political environment, and government institutions influence and affect each other.
3. International Political Economy: Also called the global political economy. This approach examines the linkage between international relations and economics. As it arises from the interdisciplinary approach, it draws from various academic areas, such as economics, political science, cultural studies, history, and sociology.
Key Pointers
Political economy is nothing but the study of how economic philosophies like communism or capitalism functions in the real world.
People who study regarding political economy seek to understand how an economic system is impacted by culture, history, and customs.
Global political economy explores how political forces form interactions across the global economy.
