"It's called political economy because it is has nothing to do with either politics or economy"
- Stephen Leacock
About this Quote
This quote by Stephen Leacock is an amusing way of explaining the irony of the term "political economy". The term indicates that it is a mix of politics and economy, when in truth it has nothing to do with either. Political economy is in fact a branch of economics that studies the relationship in between politics and economics. It looks at how political decisions and policies impact economic outcomes, and how economic conditions affect political decisions. It also takes a look at the function of government in the economy, and how financial systems are structured and regulated. In other words, political economy is a field of study that looks at the interaction between politics and economics.
"Well, I think any time you delve into this sort of religion, politics, as you well know, you're going to, you know, touch a few nerves. I wasn't - now - and this is the honest truth"
