The new economy : background, historical perspective, questions, and speculations
In a presentation at the Federal Reserve Bank of Kansas City’s 2001 symposium, “Economic Policy for the Information Economy,” Professor J. Bradford DeLong of the University of California-Berkeley, and Harvard President Lawrence H. Summers suggested that any attempt to analyze the meaning and importance of the "new economy" must grapple with four questions:> First, in the long run, how important will ongoing technological revolutions in data processing and data communications turn out to be? Second, what does the crash of the Nasdaq tell us about the future of the new economy? Third, how should government regulation of the economy change so as to maximize the benefits we reap from these ongoing technological revolutions? And fourth, how will the American economy respond to the shock to public confidence and the destruction caused by the terror attacks of September 11?> In exploring answers to these questions, the authors found the following: The long-run economic impact of the ongoing technological revolutions in data processing and data communications will be very large indeed. The crash of the Nasdaq tells us next to nothing about the dimensions of the economic transformation that we are undergoing. It does, however, tell us that the new economy is more likely to be a source of downward pressure on margins than of large durable quasi-rents. The principal effects of the "new economy" are more likely to be "microeconomic" than "macroeconomic," and they will lead to profound—if at present unclear—changes in how the government should act to provide the property rights, institutional frameworks, and "rules of the game" that underpin the market economy. And finally, the events of September 11 will slow private investment in new technologies, but U.S. military spending is likely to increase, and the increase in military spending will be concentrated on high-technology data-processing and data-communications products. On ba
(This abstract was borrowed from another version of this item.)
Volume (Year): (2001)
Issue (Month): ()
|Contact details of provider:|| Postal: 1 Memorial Drive, Kansas City, MO 64198-0001|
Phone: (816) 881-2254
Web page: http://www.kansascityfed.org/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Freeman, Chris & Louca, Francisco, 2002.
"As Time Goes By: From the Industrial Revolutions to the Information Revolution,"
Oxford University Press, number 9780199251056, December.
- Freeman, Chris & Louca, Francisco, 2001. "As Time Goes By: From the Industrial Revolutions to the Information Revolution," OUP Catalogue, Oxford University Press, number 9780199241071, December.
- Gallini, Nancy & Scotchmer, Suzanne, 2001.
"Intellectual Property: When Is It the Best Incentive System?,"
Department of Economics, Working Paper Series
qt9wx2c2hz, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Nancy Gallini & Suzanne Scotchmer, 2002. "Intellectual Property: When Is It the Best Incentive System?," NBER Chapters, in: Innovation Policy and the Economy, Volume 2, pages 51-78 National Bureau of Economic Research, Inc.
- Nancy Gallini & Suzanne Scotchmer, 2002. "Intellectual Property: When Is It the Best Incentive System?," Law and Economics 0201001, EconWPA.
- Nancy Gallini & Suzanne Scotchmer, 2003. "Intellectual Property: When is it the Best Incentive System?," Levine's Working Paper Archive 618897000000000532, David K. Levine.
- Nancy Gallini and Suzanne Scotchmer., 2001. "Intellectual Property: When Is It the Best Incentive System?," Economics Working Papers E01-303, University of California at Berkeley.
- Bresnahan, Timothy F. & Trajtenberg, M., 1995.
"General purpose technologies 'Engines of growth'?,"
Journal of Econometrics,
Elsevier, vol. 65(1), pages 83-108, January.
- Robert E. Kuenne (ed.), 1990. "Microeconomics," Books, Edward Elgar Publishing, volume 0, number 564, June.
- Christina D. Romer, 1999.
"Changes in Business Cycles: Evidence and Explanations,"
Journal of Economic Perspectives,
American Economic Association, vol. 13(2), pages 23-44, Spring.
- Christina D. Romer, 1999. "Changes in Business Cycles: Evidence and Explanations," NBER Working Papers 6948, National Bureau of Economic Research, Inc.
- Diane Coyle, 1999. "The Weightless World: Strategies for Managing the Digital Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262531666, March.
- Claudia Goldin & Lawrence F. Katz, 1999. "The Returns to Skill in the United States across the Twentieth Century," NBER Working Papers 7126, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:fip:fedkpr:y:2001:p:11-43. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lu Dayrit)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.