Chapters discuss how interests, ideas and institutions are the methodological and conceptual building blocks of political economy. The authors use these concepts to understand how markets work and why they fail, the problems facing the welfare state, the political economy of voting and democracy, and the problems of cooperation in a world of interdependent democracies. Covering the main analytical approaches that political economists have developed to tackle the complexities of this social world, the book expands on some of the most important questions confronting the field.

Understanding Political Economy is an invaluable resource for academics and students of political science, economics, and international relations. Its insights on capitalism, democracy and inequality are vital for policymakers in the field.