POLS 2100 Chapter Notes - Chapter 4: Hyperinflation, Purchasing Power Parity, Deflation
9 Nov 2016
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Document Summary
Economic institutions are not easy to replace or change once they have been constructed, they are self-perpetuating. Political economy: the study of how politics and economics are related and how their relationship shapes the balance between freedom and equality. Markets: the interactions between the forces of supply and demand, allocate resources through the process of these interactions. *can be decentralized - not easily controlled by the state. Communities of buyers and sellers constantly interacting through the economic choices made. States can enforce contracts, sanction activity and regulate supply and demand where necessary. Property: the ownership of goods and services exchanged using markets, there are usually property rights that go along with ownership. *state must regulate property rights or else they would be insecure. There can be intangible property as well as physical property (i. e a song) Some states are unwilling or unable to establish property rights.
