Technological synergies have enlarged the set of productive capital investments, while lofty equity values and declining prices of high-tech equipment have reduced the cost of capital. The result has been a veritable explosion of spending on high-tech equipment and software, which has raised the growth of the capital stock dramatically over the past five years.
The fact that the capital spending boom is still going strong indicates that businesses continue to find a wide array of potential high-rate-of-return,  BIS Review 21/2000  2  productivity-enhancing investments. And I see nothing to suggest that these opportunities will peter out any time soon.