New Economy, New Recession?

6 Pages Posted: 29 Mar 2002

See all articles by Evan F. Koenig

Evan F. Koenig

Federal Reserve Banks - Federal Reserve Bank of Dallas

Thomas F. Siems

Federal Reserve Bank of Dallas - Research Department

Mark A. Wynne

Federal Reserve Bank of Dallas

Abstract

The National Bureau of Economic Research (NBER) confirmed in November 2001 what many had long suspected - that the U.S. economy was in recession and had been since March 2001. Thus ended an economic expansion that had begun in March 1991, the longest in the NBER chronology that dates to the mid-1800s. During this expansion, many economists and policy analysts talked about a "New Economy" characterized by a higher sustained level of productivity growth brought on by new networking information-sharing technologies.

What does the New Economy's new recession look like? This article examines the 2001 recession by comparing it with previous recessions and investigating whether an added degree of resilience and flexibility is evident in the economy. The downturn appears to have been relatively mild and to have been tempered by the productive use of information technologies. Paradoxically, the information technology sector itself was hit exceptionally hard.

Keywords: New Economy, recession, business cycles, productivity, economic growth, information technology, economic resilience, economic flexibility, GDP growth, GDP volatility

JEL Classification: E0, E3, N1, O4

Suggested Citation

Koenig, Evan F. and Siems, Thomas F. and Wynne, Mark A., New Economy, New Recession?. Available at SSRN: https://ssrn.com/abstract=305505 or http://dx.doi.org/10.2139/ssrn.305505

Evan F. Koenig

Federal Reserve Banks - Federal Reserve Bank of Dallas ( email )

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

Thomas F. Siems (Contact Author)

Federal Reserve Bank of Dallas - Research Department ( email )

2200 N. Pearl Street
Dallas, TX 75201
United States
214-922-5129 (Phone)
214-922-6076 (Fax)

Mark A. Wynne

Federal Reserve Bank of Dallas ( email )

PO Box 655906
Dallas, TX 75265-5906
United States
214-922-5159 (Phone)
214-922-5194 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
503
Abstract Views
3,452
rank
70,004
PlumX Metrics