What is the political economy?

The political economy is freely defined as a mutual relationship between economic conditions and people and the government in a particular country or around the world. The term was given a favor of the 20th century with the rise of economists such as Adam Smith and philosophers, such as Karl Marx, who tried to explain the way human behavior shapes economic conditions. In the 20th century, the political economy was more often referred to as the study of economic markets and events or incentives that cause to respond. Although this term is smooth, the political economy in all cases attempts to explain the economic conditions so that they can be foreseen in the future. The term cropped in the 17th century and since then has been twisted and bent to be relevant to economic situations that prevail at that time. As economic systems have evolved, it has become more common for people who try to understand how these systems affect people in society and vice versa.

This study was conducted by economists such as Adam Smith, one of the first men to study the market system in terms of theories such as supply and demand. Smith's study led him to believe that capitalism was the most advanced success of humanity and that the market system would be repaired to represent the needs of society. Others who followed him claimed that in some cases the market needs to stimulate the government, either through taxes or business incentives to meet the needs of people.

Karl Marx revolutionized the theory of political economy by offering criticism of the class system. He studied the growing industrial revolution in Europe in the 19th century, theorized that although a common worker dominated the means of production, the Academic Genaites were the business who profit most, while the workers remained in relative poverty. Based on Marx's work, many workers have increased to protest against these conditions.

6 The term now applies more specifically to the ROLI, which is played by the government in determining the economic conditions of a particular country. It also refers to how economic conditions play a role in the political arena in terms of the elections or changes in the regime. The concept is usually studied as an offshoot of modern political science.