Economic globalization seems to be the trend of the future. However, economic globalization does not mean that the local and politics should be abandoned or given up. The purpose of this paper is to emphasize that there is an inseparable relationship between politics and economy. In other words, ”there is no such thing as an economy. There is only political economy.” The following is divided into seven parts: first, the introduction; second, the meaning of globalization and the related concepts; third, the discussion of whether the world financial market has been well-developed and has become the self-regulating market, i.e., the Pareto optimality in terms of economic concept; forth, the analysis of the meaning of ”new” economy and the possibility of the new era of economy; fifth, the clarification of the inseparable relationship between politics and economy; sixth, a close look at the relationship between economic globalization and the state; finally, the conclusion.
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