DP3597 | An Assessment of the New Economy

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20/10/2002

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Abstract

The remarkable economic success of the United States in the 1990s led many observers to talk about a ?New Economy?. This Paper provides an overview of the main issues, including faster productivity growth, the stability of inflation despite very low unemployment, the greater overall economic stability of the 1990s, the role of monetary policy, and the boom in the stock market. The Paper also considers whether or not the acceleration in productivity growth can be sustained, and the possible implications for the rest of the world.