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The worldwide scare over the ‘Y2K bug’ resulted in the expenditure of hundreds of billions of dollars on Y2K compliance and conversion policies. Most of this expenditure can be seen, in retrospect, to have been unproductive or, at least, misdirected. In this article, the technological and institutional factors leading to the adoption of these policies are considered, along with suggestions as to how such policy failures could be avoided in future.
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