Political economy refers to the study of how political institutions, the economic system, and the societal context interact and influence each other. It looks at how policies are formulated, how resources are allocated, and how power dynamics shape economic outcomes. Understanding political economy is crucial when analyzing systems like populism and import substitution industrialization, as it helps to reveal how economic policies can reflect and reinforce political ideologies and social structures.
congrats on reading the definition of Political Economy. now let's actually learn it.