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Article: The Future of the New Economy.(Statistical Data Included)
- Article from:
- FRBSF Economic Letter
- Article date:
- May 11, 2001
- Author:
CopyrightCOPYRIGHT 2001 Federal Reserve Bank of San Francisco. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The increase in productivity growth rates beginning in the mid-1990s has helped boost economic growth and speed the rate at which living standards rise in the United States. Between 1995 and 2000, productivity growth averaged 2.8%--almost double the rate during the preceding 22 years! This increase in productivity growth is thought by many observers to be associated with the increased importance of information technology (IT), a hypothesis often referred to as the "New Economy" view.
Whether rapid productivity growth will continue has been the subject of much debate. And the debate has intensified in the last six months, with the sharp decline in the tech-heavy ...