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# Economic System Transformation

## Definition

The fundamental change and restructuring of economic arrangements from one system to another, involving the replacement of existing institutions, policies, and practices with new ones that represent a different approach to organizing economic activity and achieving political economy's objectives.

## Source Chapter

Book IV, Chapter 0

## Context

Smith's distinction between ancient and modern systems implies the possibility and occurrence of fundamental transformations in economic arrangements as societies develop and circumstances change.

## Economic Domain

General Theory

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