Drought, climate crisis, fertilizer shortages and war threaten world food security and inflation; the Molotov cocktail fuse of hunger is burning. As the special military operation continues, it is not clear whether classical monetary theory will control inflation nor whether it will solve the problem of hunger.
Since the late 2020s, the world began to experience a sustained rise in inflation that has not stopped. As the outbreak of the COVID-19 pandemic began to subside, the world experienced a sustained increase in price levels that has not stopped. The Russian military operation on Ukrainian territory has become a further force pushing up prices globally. While several commodity-exporting countries see rising commodity prices as an opportunity to improve their external economic balances, they will also have to face the pressure that prices will put on them.
According to the most recent 2020 data, the People's Republic of China is the world's most considerable emerging powerand the second-largest country in GDP (14 trillion current dollars). It has a population of 1.4 billion and is the world's largest producer of electricity (7.8 terawatt-hours).
