TAILIEUCHUNG - DIGITAL ECONOMY 2000

The . economic expansion is now in its tenth year, showing no signs of slowing down. The rate of labor productivity growth has doubled in recent years, instead of falling as the expansion matured as in previous postwar expansions. Moreover, core inflation remains low despite record employment and the lowest jobless rates in a generation. Our sustained economic strength with low inflation suggests that the . economy may well have crossed into a new era of greater economic prosperity and possibility, much as it did after the development and spread of the electric dynamo and the internal combustion engine | Digital Economy 2000 ECONOMICS AND STATISTICS ADMINISTRATION . Department of Commerce June 2000 DIGITAL ECONOMY 2000 ECONOMICS AND STATISTICS ADMINISTRATION Office of Policy Development Patricia Buckley David Henry Gurmukh Gill Susan LaPorte AUTHORS Chapter II Sabrina Montes Chapter III Donald Dalton Chapter IV Jesus Dumagan Chapter V Sandra Cooke Dennis Pastore Lee Price Chapter VI Chapter VII Robert Shapiro Under Secretary for Economic Affairs Contributing Editors Lee Price Chief Economist Jeffrey Mayer Director of Policy Development For further information contact Secretariat on Electronic Commerce U. S. Department of Commerce Washington DC 20230 202 482-8369 http THE SECRETARY OF COMMERCE Washington DC 20230 I am pleased to release Digital Economy 2000 the Commerce Department s third annual report on the information-technology revolution and its impact on our economy. Understanding sweeping economic changes as they are happening is a formidable challenge. In government agencies and research institutions around the world analysts are trying to meet this challenge. Digital Economy 2000 is an important contribution to this effort and a measure of its progress. In the twelve months since our previous digital economy report confidence has increased among both experts and the American public that the new proliferating forms of e-business and the extraordinary dynamism of the industries that produce information-technology products and services are harbingers of a new economic era. For most economists the key measure of our new condition is the exceptional increase in productivity of the last five years which .

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