Political Economy and Economics Research Proposal

Political Economy and Economics - Research Proposal Example The term political economy is used in yet a third sense. â€Å"It is the name of the science, which treats of this nation-wide complexus of economic activities.† (Knight, 2005) The subject matter of political economy: Political economy studies the laws, which cover the functions of production and exchange of material means. Both important functions constitute. Production is an independent function but the exchange is dependent on production since exchange can only be done of products. Although the external influences affect both of the two functions but in order to put up with these external influences both the functions have their own laws. Production and exchange are the major activities, which constitutes the economics curve. The circumstances affecting these two functions can be different in different countries. The difference in time span in which both of these functions are practiced can also change the notion of political economy. â€Å"Political Economy belongs to no nation; it is of no country: it is the science of the rules for the production, the accumulation, the distribution, and the consumption of wealth. It will assert itself whether you wish it or not. It is founded on the attributes of the human mind, and no power can change it.† (Speech on the Irish bill, 1870)