By almost any measure these have been good economic times. In 1999, U.S. economic growth averaged more than 4 percent for the third consecutive year. The unemployment rate fell to a 30-year low. Inflation averaged just over 2 percent. And real incomes increased. Even those at the bottom of the income distribution seem to be making gains, after years of stagnation. For some time, “it doesn't get much better than this” has been on everyone's lips. Is this rosy picture just an unusually long upswing in the business cycle? Or is a “New Economy” truly emerging?

Complete Report (875K)

Feature Essay:
Productivity Growth & the “New Economy”
by Cathy E. Minehan, Lynn E. Browne, and Lee McIntyre

Financial Statements