Economic policy for the information economy : a summary of the Bank's 2001 Economic Symposium

Abstract

The economies of the industrialized countries are being reshaped by the rapid development and diffusion of advanced information and communications technologies. Access to information is unprecedented, and the ability to process and exchange information has helped businesses increase efficiency and households raise their standards of living. There has been considerable agreement as to the broad features of the emerging information economy. But there has been less consensus on the likely magnitude and significance of the economic effects or on the important policy issues raised by these developments.> The Federal Reserve Bank of Kansas City sponsored a symposium, “Economic Policy for the Information Economy,” at Jackson Hole, Wyoming, on August 30 – September 1, 2001. The symposium brought together a distinguished group of central bankers, academics, and financial market experts to examine how the information economy will alter the structure of economic activity. The symposium also served as a forum for addressing key policy challenges.> Mr. Hakkio summarizes the principal issues raised at the symposium. Participants agreed that the information economy has changed the microeconomic and macroeconomic structure of the U.S. and foreign economies. The general consensus at the symposium was that long-run growth was probably 3 to 3 ½ percent, compared to 2 ¼ to 2 ½ percent in the 1980s and early 1990s.Information technology