“This book reveals the fundamental drivers of the New Economy in the 1990s and sets the stage for a more clear understanding of the economic and investment environment of the next 10-20 years. It shows how rapidly advancing technologies can create economic conditions over the next two decades that could be almost as favorable as the ’90s—if appropriate fiscal and monetary policies are pursued.”—From the PrefaceUnprecedented improvements in digital technologies and productivity have transformed the very foundations of our global economy, rendering 20th- century economic measurements insufficient—and often stunningly inaccurate—in tracking real economic growth. In the groundbreaking and solidly researched Digital Deflation, noted money manager and market analyst Graham Tanaka takes an up-close look at the new economic environment, revealing how far off base many of today’s most venerated statistical measures really are. Tanaka introduces models designed to help economists and corporate decision-makers quantify what is really driving productivity growth and corporate value, along with techniques investors can use to uncover and invest in today’s most high-potential, undervalued companies.Combining surprising new ideas and eye-opening analysis with convincing charts and graphs, Digital Deflation explains:Why inflation and interest rates are at their lowest levels in decades, and new economic realities that are likely to drive them even lower A unique and illuminating analysis of today’s “Productivity Revolution”—and what both developed and emerging economies must do to reap its greatest rewards How and why many of the forces that fueled the ’90s stock market growth are poised to return, along with guidelines investors can follow to profit from those forces In addition, interviews with Michael Dell, Gordon Moore, and other pioneers and leading players in the Digital Revolution spell out the history of Digital Deflation, what is happening behind closed doors today, and what economists, observers, and investors should expect in the coming ten to twenty years.For those who learn where to look, and what to look for, low inflation and rock-bottom interest rates will combine with technology-driven gains in productivity and product quality to create massive wealth over the next two decades. Digital Deflation reveals the economic measures that are being corrected to recognize and properly evaluate the drivers and realities of this New Economy, and how you can begin today to truly understand and profit from this more rewarding economic environment—one that future generations may look upon as the first great bull market of the 21st century.Graham Tanaka, C.F.A., is President, Chief Investment Officer, and Chief Economist for Tanaka Capital Management, Inc. and the TANAKA Growth Fund. In his more than a quarter century as an analyst and portfolio manager, Mr. Tanaka has held senior-level positions with Morgan Guaranty Trust and Fiduciary Trust Company of New York. He serves on the board of directors of TransAct Technologies, Inc., and received his A.B.-Sc.B. degrees from Brown University and his MBA from Stanford University. Further information can be found at www.digitaldeflation.com or www.tanaka.com.