What became of the New Economy?

Abstract

Over the past five years, there have been widespread claims - not only that there is a ‘new economy’ but that a new economy requires new economics. This article reviews the claims of this kind which have been made in three principal areas - in the measurement of economic statistics and in macroeconomic management, in company and stock market valuations, and in the nature of competitive advantage and the origins of business success. In each of these areas, it finds little basis for believing that revolutionary, rather than evolutionary, change is required. Indeed the application of well established economic principles and concepts might have saved investors, commentators, and those whose job it is to manage the economy, from costly mistakes