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Abstract
An inquiry into misgovernance in globalization vs. anti-globalization aims to understand why the ‘world factory’ has a relative lower world pricing impact and animates in the history of ‘ecological transformation’ theory for world economy growth in green economy transitions from old-industrial to advanced-industrial regime during 1980–2019. This analysis reveals that oil price in a weaker US dollar value unexpectedly decreases world food prices but in the manner of depending upon an increase in real exchange rates on the US dollar values relative to the Euro and RMB as the base terms of trade, so that further forces the China producer price to undertake a higher production cost and lets EU members undertake a higher inflation rate. A critique on that is to clearly understand that the counter-acting effects of external uncertainty in world growth are against each initial domestic plan for green transformability and forces all world trade partners to cooperate against the expected loss of the weakened US dollar values. These necessary but reluctantly complementary cooperations are highly likely to make each sovereign money value towards a similar misgovernance equifinality undertake the cost burden of contractionary depreciation in the US dollar values. Hence a possible solution is to cooperate to lower the costs of world growth, particularly to assist the world factory to work against a further world loss caused by the weaker US dollar values in order to strengthen globalization in next period.
Jel:
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Notes
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Zhan Wang
Zhan Wang Postdoctoral Researcher, Peking University, No. 5 Yiheyuan Road, Haidian District, Beijing 100871, People’s Republic of China. Email: [email protected]; Tel: +86 18612955711.