chapter  3
The new economy: theory and measurement
ByRichard G. Lipsey
Pages 28

The term ‘new economy’ means different things to different writers, which is a cause of some confusion when discussing it. Sometimes the term refers to an economy in which the laws of supply and demand no longer hold and there are neither business cycles nor inflations. Not many academic economists were gullible enough to take this view seriously. Nonetheless, new technologies do alter many economic relations, such as when ‘natural monopolies’ are turned into highly competitive industries, and vice versa.