Legal Definitions - political economy

Political economy is a social science that deals with the economic problems of government and the relationship between political policies and economic processes. It is concerned with how a community manages or administers its wealth and resources, as well as the sociopolitical organization of those resources.

• Economy: The management or administration of the wealth and resources of a community (such as a city, state, or country).
• Black economy: Also known as the shadow economy, it refers to economic activities that are not reported to the government for tax purposes.
• Overheated economy: An economy that has a high level of economic activity, but can cause interest rates and inflation to rise.

These examples illustrate the different aspects of political economy. The first example shows how a community manages its resources, while the second and third examples demonstrate how economic activities can affect the government and the overall economy. Political economy seeks to understand these relationships and how they can be managed for the benefit of society.