Political economy is the study of how economic systems and political institutions interact and influence each other. It examines how government policies, laws, and regulations affect economic behavior and outcomes, as well as how economic conditions can shape political decisions. This field often explores issues like trade, taxation, and public policy. Scholars in political economy analyze the distribution of resources and power within societies, considering factors such as class, race, and gender. They seek to understand how these dynamics impact economic development, social welfare, and overall governance. By studying these relationships, political economy aims to provide insights into improving both economic and political systems.