The Chinese Birdcage How China's Rise Almost Toppled the West

Since the 1980s China has been on a path of economic reform delivering better results in terms of economic growth than the policies of the IMF. With China's accession to the WTO almost a billion workers were added to the global economy. Within no time, China became the world's factory thanks to the virtually unlimited supply of cheap labor, driving down the real wage of blue- and white-collar workers in the U.S. and Europe. Although the U.S. government supported the economy by the low-interest policy, it resulted in the housing bubble and the destabilization of the financial sector. The economic growth in China has a significant influence on the economy in the U.S. and Europe. This book tries to figure out the influence by focusing on the link between the labour market and the monetary policy in the U.S. This proposal offers an original contribution to the field because the author elucidates not only the Chinese or the U.S. economy but also the influence channel.