Political economy is the interplay between economics, law and politics, and how institutions develop in different social and economic systems, such while capitalism, socialism and communism. Political economy examines how public policy is done and implemented. Political economy was the initial term used pertaining to studying production and trade, and their particular relations with law, custom, and government, as well much like the distribution involving national income and wealth. It was made in the 18th century for the reason that study of the actual economies of says, or polities, hence the word political economy.
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