The Nature of Political Economy” - 931 Words

An essay on Robert Gilpin â€Å"The Nature of Political Economy† This chapter introduces differences and similarities between politics and economics. Both of them affect one another. In another hand, politicians and economists have different ideas and consumptions about the same facts. Also, they choose different ways of analysis. Moreover, Mr. Gilpin talks about the importance of the understanding the nature of political economy. In today’s rapidly changing world, where globalization takes place and deeply influences national economics, international affairs, government’s decisions and international politics are very popular topics among people to discuss. What’s why the study of political economy becomes more vogue among scientists from†¦show more content†¦Even though, economists and political scientist conclusions are actually same in analysis of the same situation, sometimes they have different assumptions. This happens because of using different ways of analysis. For example, economists use data of measurable ec onomic quantities and formulate different models and make assumptions based on them. On the other hand, political scientists use a variety of units of analysis, such as action, culture, system, policy, power structure and so on. I agree with the author, and think that both ways of analysis are important, they help us to understand the political and economical reality better. Both of them has its own designation, and together let us deepen our â€Å"comprehension of developments of in the world economy†. Mr. Gilpin also talks about â€Å"nature of political actors† and it is discussed on the example of MNC’s (multinational corporation) appearance in the world market and politicians views about this matter. The nature of economic actors appears to be very different. If neoclassical economists believe that, world economy consists of individuals (consumers and producers) and they act in such way to satisfy their self interests, Marxists assume that, people are divided by economic classes and all corporations which represent the capitalist class are dominating capitalist economy. Financial crisis of 1992 year is caused by different reasons: since the mid 1970’s increasingShow MoreRelatedSovereign Debt Crisis7683 Words   |  31 PagesGreek citizens and the tension of political instability in negotiation in the Eurozone. This literature review tends to answer 3 main questions as follows: (1) the causes of sovereign debt crisis in Greece, (2) the implication of the crisis currently and (3) the ways of mitigating the problems and applying policies to solving the Greek debt problem. It can further be analyzed that the Greek debt crisis has caused a huge loss of incentives created by the European political environment and the institutional