Political Economy examines the interplay between powerful economic actors and market forces. It looks at government, NGOs, news organizations, religions, unions, oligopolistic corporations, and even individuals that possess either great wealth, political power, charismatic personalities and/or celebrity status.
Economics is based on a beautiful yet fleeting abstraction: that dynamics of nature drive the forces of supply and demand to produce an equilibrium price that will satisfy everyone involved. The state of natural perfection, often called the "market" will constantly adjust and readjust via the price system to achieve the "one price" that will "clear the market" of all products and send all customers happily on their way home.
Political Economy does not deny market forces, but recognizes that the real world consists of actors that have little interest in being subject to market forces. Every business strives to transcend market forces and establish a dominant presence with the power to set its own prices. Governments work to even out the business cycle with intentional policies to either stimulate or (rarely) slow down the economy. Central Banks like the Federal Reserve use their power over the money supply to influence the economy.
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