Abstract
proponents of the argue that, in the past decade, the economy has been fundamentally altered by the spread of computers and digital technology and the impact of globalization. According to this view, we are in a new era of high productivity growth and low inflation that will lead to enormous prosperity. The booming stock market and low unemployment and inflation of the past few years are taken as the main evidence for this bright picture of the economy. However, the problem that proponents of the new-economy view must contend with is that a more careful examination of
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