The sharp, and largely voluntary, pullback in consumer spending that followed the onset of the pandemic was undoubtedly a major trigger for the financial struggles that businesses are now facing. But in addition, there is evidence that the economic restrictions imposed by many state and local governments have played a role in the deteriorating health of small businesses.
The long term dominance of the US dollar in global financial markets may wane, raising the issue of whether reserve managers should seek to establish a more balanced currency composition of their asset portfolios, and if so, what criteria should guide this.