Legal Definitions - economy

Definition: The management or administration of the wealth and resources of a community (such as a city, state, or country). It also refers to the sociopolitical organization of a community's wealth and resources. Additionally, it can mean restrained, thrifty, or sparing use of resources; efficiency.

• Balanced economy: An economy in which the monetary values of imports and exports are equal.
• Overheated economy: An economy that, although it has a high level of economic activity, has the capacity to cause interest rates and inflation to rise.
• Political economy: A social science dealing with the economic problems of government and the relationship between political policies and economic processes.

These examples illustrate the different aspects of the definition of economy. A balanced economy is one where the value of what a country imports is equal to what it exports. An overheated economy is one where there is a lot of economic activity, but it can lead to inflation and higher interest rates. Political economy is a field of study that looks at how government policies affect the economy and vice versa.