Political Economy is the study of how economic theories and practices influence political behavior and vice versa. It examines the relationships between individuals, societies, markets, and governments, focusing on how policies affect economic outcomes and social welfare. This field encompasses various aspects, including the role of institutions, the impact of globalization, and the distribution of resources. By analyzing these interactions, Political Economy seeks to understand the complexities of power dynamics and economic systems, ultimately aiming to inform better policy decisions for societal benefit.