"Impact investing" in political economics refers to investments made with the intention of generating a measurable social or environmental impact alongside a financial return. This approach aligns capital allocation with social goals, such as addressing poverty, education, or climate change. Impact investing leverages market forces to encourage sustainable practices and responsible business models. It encourages the growth of enterprises that prioritize social benefits over purely profit-driven motives, thus bridging the gap between philanthropy and traditional investing. Ultimately, it aims to promote a more equitable society while still delivering returns to investors.