Limited government in economic area: Three approaches toward political economy 1)Mercantilism or statism:politics determines economics 2).Marxism:economics determines politics 3)Classical liberalism:politics and economics should be separated as much as possibleLimited government in economic area: Three approaches toward political economy 1) Mercantilism or statism: politics determines economics 2).Marxism: economics determines politics 3) Classical liberalism: politics and economics should be separated as much as possible