New Political Economy Redefines Economic Study of Politics with Macro Focus
The article discusses New Political Economy (NEP) as the study of how politics and economics are connected, focusing on big-picture economic issues. NEP was influenced by critiques of economic policy theory, political business cycles, public choice theory, and new institutional economics. Different economists have different ideas about what NEP is, leading to confusion. The article aims to clear up this confusion by defining NEP as the economic study of politics with a macroeconomic focus.