Business Case Studies & Business Publications

The New Economy

Beckenstein, Alan ...

Technical Note

The New Economy

Beckenstein, Alan R.

G-0626 | Published July 10, 2009 Technical Note

Collection: Darden School of Business

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The new economy refers to a unique period?mid-1990s through early 2000?that affected economic performance in the United States and led to the tech bubble and subsequent tech bust that contributed greatly to the recession of 2001-2002. This note describes the evolution of the tech bubble, the role of the Y2K problem, and the reasons for the bubble bursting in early 2000. Data are offered to show the impact this had on the broader economy as well as on the stock market for tech stocks.

To understand the evolution of an asset bubble of great importance in recent United States economic history and of asset bubbles in general. To use data updated to mid-2009 to make conjectures about the future of high tech investment.