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This volume addresses trends, causes, and consequences of the new economy in micro- and macroeconomic terms. Modern information and communications technologies increase the efficiency of traditional activities and pave the way for creating new activities and products. How will market participants cope with the challenges of the new economy and which role will governments play in a dramatically changing world?The book presents a thorough analysis of the effects of new technologies and products on overall productivity and on goods markets, labor markets, and financial markets. It also deals with the implications of the new economy for the welfare state and discusses the issue of whether there is a need for new regulatory devices, in particular in the field of international trade in goods and services.