Distinguished Lecture on Economics in Government

The New Economy: Post Mortem or Second Wind

Bibliographic Data

ID4029217
AuthorsMartin Neil Baily (Senior Fellow, Institute for International Economics, Washington, D.C; He served as Chairman, Council of Economic Advisers, from August 1999 to January 2001., corresponding author)
Year2002
Volume16
Issue2
Pages3-22
Publication date2002-05-01
Open AccessYes
TypeARTICLE
VenueThe Journal of Economic Perspectives (JOURNAL)
Journal identifiersISSN: 0895-3309 • E-ISSN: 1944-7965
PublisherAmerican Economic Association (PUBLISHER • US)
DOI10.1257/0895330027184
OpenAlexW2049267980
LanguageEN
Citations received10
References cited4

There was an acceleration of U.S. productivity after 1995. Investment in information technology hardware and software contributed importantly to this, but was not its sole cause. In part, heavy IT investment, perhaps overinvestment, was the result of the booming economy and cheap capital. Besides IT, the expansion of productive firms boosted productivity, together with the competitive pressure this put on other firms to innovate and improve. Productivity growth has been surprisingly strong in 2001, and the likely trend for the future is in the range of 2.2 to 2.7 percent a year. The economy should get a second wind

Economics · Economy · Macroeconomics · Market economy · Political science · Productivity · Economic Growth and Productivity · Economic theories and models · Fiscal Policy and Economic Growth

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Open DOISci-HubOpen Access