The Political Economy Of Capitalism


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Date: January 2008
Type: White Paper
Rating: (0)

Overview: Capitalism is often defined as an economic system where private actors are allowed to own and control the use of property in accord with their own interests, and where the invisible hand of the pricing mechanism coordinates supply and demand in markets in a way that is automatically in the best interests of society. This paper from President and Fellows of Harvard College defines capitalism as a system of indirect governance for economic relationships, where all markets exist within institutional frameworks that are provided by political authorities, i.e. governments.

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