Introduction
The growth of industry and increased interconnectedness of states through bilateral trade agreements and roles in international economic institutions makes the study of political economy more relevant all the time. This paper begin by defining what political economy is because it is a term that is used for a wide variety of subjects and specifically defining this term is necessary as it will be to set the context of this paper. The paper will then be divided into two sections with the first section arguing that political economics should not be analysed by making distinctions between political and economic dimensions of the state because these two entities are necessary in effectively studying political economy. Through examining …show more content…
The first premise is that politics and economics cannot be separated and trying to separate them even for analytical purposes has its consequences. This premise will be supported by the work of Karl Polanyi and his theory of “embeddedness” further in the essay. Second, political interaction is one of the main ways economic systems are built and grow. This premise will be supported by looking at the creation of the Bretton Woods institutions by the US and UK in post-World War II later in the essay. Third, he states that there is a strong relationship between domestic and foreign relations and that they cannot be removed from one another (Underhill 2000). This theme will be discussed throughout the second part of the …show more content…
Whether or not his theory is correct, it is important to note that this theory exists because of this complex relationship between states. Politics and economics are too deeply intertwined to ignore the relationship in any respect and the relationship is becoming more relevant everyday which is why it should be identified as an interdiscipline. It would be like trying to understand a European Union states’ economic policies without the political context of why they choose to have these policies and what motivates these states to develop these
The growth of industry and increased interconnectedness of states through bilateral trade agreements and roles in international economic institutions makes the study of political economy more relevant all the time. This paper begin by defining what political economy is because it is a term that is used for a wide variety of subjects and specifically defining this term is necessary as it will be to set the context of this paper. The paper will then be divided into two sections with the first section arguing that political economics should not be analysed by making distinctions between political and economic dimensions of the state because these two entities are necessary in effectively studying political economy. Through examining …show more content…
The first premise is that politics and economics cannot be separated and trying to separate them even for analytical purposes has its consequences. This premise will be supported by the work of Karl Polanyi and his theory of “embeddedness” further in the essay. Second, political interaction is one of the main ways economic systems are built and grow. This premise will be supported by looking at the creation of the Bretton Woods institutions by the US and UK in post-World War II later in the essay. Third, he states that there is a strong relationship between domestic and foreign relations and that they cannot be removed from one another (Underhill 2000). This theme will be discussed throughout the second part of the …show more content…
Whether or not his theory is correct, it is important to note that this theory exists because of this complex relationship between states. Politics and economics are too deeply intertwined to ignore the relationship in any respect and the relationship is becoming more relevant everyday which is why it should be identified as an interdiscipline. It would be like trying to understand a European Union states’ economic policies without the political context of why they choose to have these policies and what motivates these states to develop these