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Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: John Mansfield who wrote (1524)	5/1/1998 6:35:00 PM
From: John Mansfield	Read Replies (4) \| Respond to of 9818

[FRB] 'Federal Reserve Board Testimony of Governor Edward W. Kelley, Jr. Before the Committee on Commerce, Science, and Transportation, U.S. Senate April 28, 1998 ... The Macroeconomic Effects of the Millennium Bug The Year 2000 ("Y2K") problem will touch much more than just our financial system and could temporarily have adverse effects on the performance of the overall U.S. economy as well as the economies of many, or all, other nations if it is not corrected. The spectrum of possible outcomes is broad, for the truth of the matter is that this episode is unique. We have no previous experiences to give us adequate guideposts. A few economists already are suggesting that Y2K-related disruptions will induce a deep recession in the year 2000. That is probably a stretch, but I do not think that we shall escape unaffected. Some of the more frightening scenarios are not without a certain plausibility, if this challenge were being ignored. But it is not being ignored. While it is probable that preparations may in some instances prove to be inadequate or ineffective, an enormous amount of work is being done in anticipation of the rollover of the millennium. It is impossible today to forecast the impact of this event, and the range of possibilities runs from minimal to extremely serious. In that spirit, let me review with you some of the ways in which the millennium bug already is influencing the U.S. economy and discuss some of the possible outcomes for economic activity early in the next century ... bog.frb.fed.us