The post-bubble USA economy : implications for financial markets and the economy

The US is slowly recovering from the aftermath of the burst of the 'new economy' bubble - which was one of the worst in monetary history. Philip Arestis and Elias Karakitsos examine the causes and consequences of the burst of the 'new economy' bubble and investigate the impact on financial markets. The risks and long-term prospects for the economy and financial markets are also examined. The US economy has gone through a period of fluctuation in the last twenty years or so. The economy had a time of significant expansion that lasted for almost ten years. Stock markets made enormous gains, especially in areas of technology, media and communication. This led to the belief in the emergence of a 'new economy' with rules that were different from what had traditionally been known. However, beginning in March 2000, the stock market simply crashed. The US is now slowly recovering from the aftermath of the bursting of the 'new economy' bubble - which was one of the worst in monetary history. In this sophisticated yet assessable analysis of the US economy, the authors examine the causes and consequences of the bursting of the 'new economy' bubble and investigate the impact on financial markets. The risks and long-term prospects for the economy and financial markets are also examined Front Matter....Pages i-xxiv Introduction....Pages 1-16 The Causes and Consequences of the Post-‘New Economy’ Bubble....Pages 17-33 Wages and Prices and the Proper Conduct of Monetary Policy....Pages 34-65 Corporate Profits and Relationship to Investment....Pages 66-100 Long-term Risks to Investment Recovery....Pages 101-135 The Housing Market and Residential Investment....Pages 136-166 Long-term Risks of Robust Consumer Behaviour....Pages 167-205 Foreign Demand....Pages 206-234 The US External Imbalance and the Dollar: A Long-term View....Pages 235-263 The Long-term Risks to US Financial Markets....Pages 264-287 Back Matter....Pages 288-301

the Us Is Slowly Recovering From The Aftermath Of The Burst Of The New Economy Bubble--which Was One Of The Worst In Monetary History. Philip Arestis And Elias Karakitsos Examine The Causes And Consequences Of The Burst Of The New Economy Bubble And Investigate The Impact On Financial Markets. The Risks And Long-term Prospects For The Economy And Financial Markets Are Also Examined.

Slowly, the United States is recovering after the 'new economy' bubble burst - one of the worst monetary setbacks in history. This text examines the causes and consequences of the collapse, as well as highlighting the long-term implications for financialmarkets