Reconsidering the History of Political Economy

Political economy, as a field of study, now generally refers to work on the interplay of state actors and the macroeconomy. As practiced by economists, political scientists, and legal scholars, political economy concerns the behavior of central bankers, the impacts of changes in the tax code, world trade negotiations. It has to do with policy. But to historians of economics, the term “political economy” is more likely to call to mind thinkers who engaged in economic reasoning a century or more ago: Adam Smith, Jean-Baptiste Say, Karl Marx. For many historians of economics, “political economy” functions as a shorthand: “economics” avant la lettre. Evoking a time before the formal disciplinization of “economics,” “political economy” suggests a more humanistic perspective, “economics” a more scientistic one. Whereas the term “economics” has been used to refer to an academic discipline, practiced by disinterested intellectuals, the term “political economy,” in both its usages, highlights the close connection between economic ideas and political action.