New Economy

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Definition of 'New Economy'

The New Economy is a term used to describe the period of economic growth and prosperity that began in the United States in the late 1990s. The term is often used to refer to the rise of the internet and the dot-com bubble, but it can also be used to describe a broader set of economic changes that took place during this time.

The New Economy was characterized by a number of factors, including:

* **Rapid growth in the technology sector.** The internet and other new technologies led to a boom in the technology sector, which created new jobs and opportunities for growth.
* **Increased globalization.** The New Economy was also marked by increased globalization, as businesses and investors became more connected to the global economy.
* **Lower interest rates.** Low interest rates made it easier for businesses to borrow money and invest in new projects.
* **A rise in stock prices.** The booming technology sector and increased globalization led to a rise in stock prices, which made it easier for businesses to raise capital.

The New Economy came to an end in the early 2000s, when the dot-com bubble burst and the economy entered a recession. However, many of the economic changes that took place during the New Economy have continued to shape the global economy.

The New Economy had a number of positive effects on the economy. It led to increased productivity, job creation, and economic growth. It also helped to make the world more interconnected and globalized.

However, the New Economy also had some negative effects. The rise of the technology sector led to a widening gap between the rich and the poor. It also contributed to the financial crisis of 2008.

Overall, the New Economy was a period of significant economic change and growth. It had both positive and negative effects on the economy, and its legacy continues to shape the global economy today.

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