The level of our country’s productive capacity – in other words, its potential – dropped, as the Bank noted in April 2009. Standard macroeconomic models don’t really capture these dynamics. Just as the financial crisis triggered an atypical recession, the recovery cycle is unusual. The rotation of demand will require more than just the ramping up of production.
It is also likely that these digital wallets will contain more than just digital representations of the cards that are in our physical wallets. In particular, I expect that they are likely to provide access to new token or account-based digital forms of money.