Political economics is the analysis of the interaction between political actors, in shaping economies, and economic interests when making political choices. It is about understanding the role of governments, law, institutions, and the economy together - how power, ideology, and policy decisions influence the distribution of wealth and resources in society.

At a basic level, political economics recognizes that economic actors do not make decisions within a vacuum but rather, under the influence of the priorities of others, who may or may not be economically motivated actors. For example, a government might invest in publicly funded health care or education for economic reasons, but also out of political, value-based, motivations such as equality or social welfare. Similarly, decisions taken about taxation, welfare, trade and environments, will be influenced by ideologies that inform the ruling party's decisions about how far they want the economy to be market, state or mixed economy driven.

This field of study grows to incorporate analyses around class, economic inequality, and the interests of groups, and how these factors might influence political decision making. For example, wealthier groups in society can lobby or pay for a campaign to place their needs at the forefront of political actors, whereas groups from poorer socioeconomic backgrounds can sometimes struggle to have their needs represented. Or why some policies are clearly better for the economy, yet fail due to political or related conflicts. Or, on occasion, why economic reforms to alleviate inequalities, or boost growth.

In our everyday life, it is useful to think about political economics. The discipline refers in part to why housing might be unaffordable in some parts of the world, why the provision of healthcare systems varies between countries, or why responses to inflation differ greatly. Political economics touches on who pays taxes, who receives government support, and which sectors are prioritised when allocating limited resources.

In summation, political economics is concerned with the interrelationship and intersection of politics and economics, and how that is organised and structure the world we inhabit. It is fundamentally important in understanding how policies are made; accountability of governments, and the more latent battle for a better and more equitable and effective economic system. If we understand this interrelationship, we are better placed to assess and evaluate whether existing policies even have the public good in mind.