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# Modern System of Political Economy

## Definition

The contemporary approach to economic organization and development, characterized by commercial activity, manufacturing, and trade as the primary drivers of national wealth. This system represents the evolution of political economy from earlier agricultural-based approaches.

## Source Chapter

Book IV, Chapter 0

## Context

Smith identifies the system of commerce as the modern system of political economy, noting that it is best understood in contemporary contexts and particularly in his own country. This establishes the temporal dimension of economic systems and their evolution over time.

## Economic Domain

General Theory

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