The third edition of Political Economy: The Contest of Economic Ideas is a fully updated overview of the political economy and its connection with social concerns. This book investigates the main traditions of economic ideas and provides a `big picture' overview of the analytical tools and value judgements associated with competing schools of economic thought. Political Economy features an engaging writing style which makes the complexities of contesting economic ideas - such as classical political economy and Marxist economics, neoclassical economies and neo-liberalism - clear and accessible. This is essential reading for those students and teachers interested in broadening their understanding of conventional political economics, and considering the coherent and constructive alternatives. New to this Edition: New chapter on the economics of happiness New sections on: - The global financial crisis - The economic implications of climate change - `Putting a price on carbon' - `Green jobs' - Financialisation - `Affluenza' - Behavioural economics New images of key economists who have shaped the development of economic theory.