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MEASURING THE NEW ECONOMY: AN INTERNATIONAL COMPARATIVE PERSPECTIVE
Author(s) -
Van Ark Bart
Publication year - 2002
Publication title -
review of income and wealth
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.024
H-Index - 57
eISSN - 1475-4991
pISSN - 0034-6586
DOI - 10.1111/1475-4991.00036
Subject(s) - economics , production (economics) , unemployment , inflation (cosmology) , goods and services , information and communications technology , perspective (graphical) , macroeconomics , economy , physics , theoretical physics , political science , law , artificial intelligence , computer science
The advances made in the production and use of information and communication technology (ICT) during the past decades may have potentially large effects for long term economic growth. Indeed the substantial acceleration in real GDP growth in many OECD countries, but in particular in the United States, during the second half of the 1990s has led to suggestions that a “new economy” has emerged. In this new economy the old economic rules were supposed to have become invalid. For example, traditional concerns about the limits of maximum production capacity might disappear as the marginal costs of producing ICT goods and services are virtually nil. Moreover, the trade‐off between inflation and unemployment could be reduced due to a more efficient inventory management.