Political Economy: A 21-Century Strong Device for Analyzing and Policy Making

Political economy is a strong paradigm in interdisciplinary studies of economics, which can analyze different economic and non- economic issues. In addition, findings of political economy can provide efficient instruments for policy making in economic systems. Using analytical-descriptive method, interdisciplinary method and employing economic theories, this paper is going to explain, analyze and investigate political economy. Considering the interdisciplinary nature of political economy, which is one of the most fruitful scientific disciplines in social science, the findings of this paper can be helpful in solving the problems of economics and also other social science’s disciplines. The findings of this paper, based on the latest available researches on the subject by 2019, can also be helpful in analyzing the various dimensions of Iran's economy and in designing a policy structure considering superior institutions, since many studies show that many of the problems of Iran's economy are political-economic, not only economic.