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The ‘New Economy’ : The Role of Policies and Institutions*

Published online by Cambridge University Press:  17 August 2016

Alain Quinet
Alain Quinet*
Affiliation:
Direction de la Prévision, Ministère français de l’Economie, des Finances et de l’Industrie
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Summary

The most important claim of the ‘new economy’ is that a new wave of technologies is lifting potential GDP. The effects were first seen in the United States. In the first half of the nineties, information and communication technologies (ICT) stimulated capital accumulation and employment, without any visible impact on productivity growth - the so-called ‘Solow paradox’. Starting in the middle of the decade, the long-awaited increase in productivity growth at last came about: from 1995 to 2001, average labour productivity in the US grew at 2.4%, one percentage point above the rate that prevailed between 1973 and 1995.

Type
Epilogue
Information
Recherches Économiques de Louvain/ Louvain Economic Review , Volume 68 , Special Issue 1-2: The New Economy: Implications and Viability , 2002 , pp. 257 - 269
Copyright
Copyright © Université catholique de Louvain, Institut de recherches économiques et sociales 2002 

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Footnotes

*

The views expressed here are those of the author and do not necessarily reflect those of the ministry

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