Methodological Problems of Modern Political Economy Subject

Abstract

The article addresses the problem of new political economy as grand (if imperfect) synthesis of various strands. Exploring different approaches reveals a set of the problems concerning the rise of economic society. We show in the article through the classical approach that political economy responds to and contributes to economics, so far as the older sense of politics is concerned. Most approaches to political economy treat the private sector as the primary arena. It sets agendas and ultimately governs outcomes. The idea of a collective or public reality different in nature from the system of private interests holds little appeal for political economy. In our view, the main difficulty of political economy, common to different approaches, lies in the tendency to gloss over the separateness of the two spheres, the economic and the political one, absorbing one into the other. The main topic of our survey is the importance of understanding and appreciating the categorical distinction between politics and economics, and the dangers of making one or the other dominant in both realms.