16. The Productivity Watch
According to former Federal Reserve chairman Alan Greenspan,IT investments in the 1990s boosted productivity, which boostedcorporate profits, which led to more IT investments, and soon, leading to a nirvana of high growth.Fortune, September 4, 2006
Which of the growth theories that you have studied in thischapter best corresponds to the explanation given by Mr.Greenspan?
- Mr. Greenspan is describing the new growth theory. According tothis theory, economic growth will persist indefinitely becauseof the perpetual pursuit of profit.