But these adjustments in prices and in the associated allocation of resources, when complete, represent one-time level adjustments, without necessary implications for our longerterm growth prospects. Indeed, the exploitation of available networking and other information technologies was only partially completed when the cyclical retrenchment of the past year began.
High-tech equipment investment at elevated rates of return will, most likely, resume once very high uncertainty premiums recede to more normal levels. The level of productivity will presumably undergo a one-time downward adjustment as our economy responds to higher levels of perceived risk.