I think it partly has to do with how we measure growth (i.e. GDP). For example, try using a laptop and a mobile phone from 2001 for a week or so. How does that

I think it partly has to do with how we measure growth (i.e. GDP). For example, try using a laptop and a mobile phone from 2001 for a week or so. How does that feel? No growth, ehu? ;P Another aspect I think is how much "non-monetized" value the Internet is creating. What would you pay for access to an Internet search engine (like Google or one of it's competitors), if you really had to? Going without is just not an option, but the price still hovers around zero. That brings us to yet another aspect; the Internet puts a huge downward pressure on all (comparable) prices. I think this is a major factor behind the lack of inflation: hiking prices is just not possible the way it used to be.