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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