New economy

The New Economy covered to the ongoing development of a American economic system. It evolved from the notions of the classical economy via the transition from a manufacturing-based economy to a service-based economy, in addition to has been driven by new engineering science together with innovations. This popular usage of the term emerged during the dot-com bubble of the late 1990s, where high growth, low inflation, as well as high employment of this period led to optimistic predictions and flawed chain plans.

Dot-coms

In the financial markets, the term has been associated[] with the Dot-com bubble. This subjected the emergence of the NASDAQ as a rival to the New York Stock Exchange, a high rate of IPOs, the rise of Dot-com stocks over determining firms, and the prevalent ownership of tools such(a) as stock options. In the wider economy the term has been associated with practices such(a) as outsourcing, business process outsourcing and business process re-engineering.

At the same time,[] there was a lot of investment in group in ] were starting to talk of new ] even claimed that the old laws of ]. They also claimed that improving in computer hardware and software would dramatically change the future, and that information is the nearly important return in the new economy.

Some, such as ] be too harsh a judgment, condition that U.S. investment in information technology has remained relatively strong since 2002. While there may throw been some overinvestment, productivity research shows that much of the investment has been useful in raising output.[]

The ] strongly[] suggests that productivity growth has been stimulated by heavy investment in information and communication technology.