Money Issues Links

"Technology is driving dramatic change in the US payments system, which is a vital infrastructure that touches everyone. The pandemic accelerated the migration to contactless transactions and highlighted the importance of access to safe, timely, and low-cost payments for all. With technology platforms introducing digital private money into the US payments system, and foreign authorities exploring the potential for central bank digital currencies (CBDCs) in cross-border payments, the Federal Reserve is stepping up its research and public engagement on CBDCs. more »

14.2% of U.S. Small Businesses experienced an increase in operating revenues/sales/receipts in the last week, marking the fifth consecutive week of reported increases. 21.9% of U.S. Small Businesses have experienced little or no effect from the coronavirus pandemic, making it the largest estimate ever reported for this statistic. 9.5% of U.S. Small Businesses experienced an increase in the number of hours worked by paid employees in the last week. For responses collected 3/22 - 3/28, this statistic was 9.0%. 13.9% of U.S. Small Businesses have returned to their normal level of operations. 22.9% of U.S. Retail Trade small businesses experienced an increase in operating revenues in the last week, marking the first time on the SBPS that more companies reported an increase over a decrease, based on responses collected 3/29 – 4/4 more »

"The negative economic effects of the pandemic come from two sources: capital obsolescence and belief scarring. The pandemic and lockdowns forced consumers to work and consume differently, which can generate persistent changes in tastes and habits for years to come. Capital obsolescence reflects this long-lasting change in the economic value of installed capital. For example, in the post-pandemic world there might be more online shopping instead of in-store purchases. Hence, some installed capital, for example, commercial real estate such as shopping malls, could become obsolete." more »

"There is growing evidence that extreme weather events related to climate change are on the rise — droughts, wildfires, hurricanes, and heatwaves are all becoming more common. Climate-related events are already adversely affecting the lives of many Americans. The economic and financial impacts are also increasingly evident: we are already seeing elevated financial losses associated with an increased frequency and intensity of extreme weather events. Some have described Pacific Gas and Electric's bankruptcy as the first climate-related bankruptcy of a major US corporation... more »