The Political Economy of Economic Policy

Delivering sustainable economic growth
Posted Jun 23, 2020 | IMF, Jeffry Frieden

Political economy is the integration of political and economic factors in society. While the COVID-19 pandemic spread around the world, policy response were tempered by local political realities, varying for health, economic, and political reasons. Jeffry Frieden argues in this article that inasmuch politics and economics are intricately and irretrievably interwoven, politics affects the economy and the economy affects politics. This reality is important in understanding governments and societies; it can also be a powerful tool for those interested in changing governments and societies. Policymakers should keep these lessons in mind today as they tackle the pandemic.


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