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# Economic System Policy

## Definition

The specific rules, regulations, and administrative measures that guide and control economic arrangements, including the laws, institutions, and practices that implement political economy's objectives and shape the operation of economic systems.

## Source Chapter

Book IV, Chapter 0

## Context

Smith's discussion of political economy as the science of the statesman or legislator establishes the importance of policy in shaping and directing economic arrangements toward their intended objectives.

## Economic Domain

Regulation

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