High Tech: The Force That's With Us

It isn't just powering growth--it's zapping inflation

On the eve of the Federal Reserve's May 19 monetary policymaking meeting, good news abounds. The U.S. economy continues to steam ahead--growing by 3.6% over the past year. Inflation, as measured by the gross domestic product deflator, is running at only a 1.4% rate. And productivity over the past year showed a strong increase of nearly 2%, despite a meager gain in the first quarter. Indeed, Fed Chairman Alan Greenspan is said to believe that there's no evidence that underlying productivity growth is slowing.

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