“Central bank money,” consisting of cash and central bank deposits, constitutes the most intrinsic foundation and underpinning of the nation’s financial system by providing a settlement chain in collaboration with “commercial bank money.” Let me paraphrase what I mean by this.
While the extent of the closures and shutdowns varied widely throughout the country, the sudden loss of employment and the contraction in output were like nothing our nation has experienced before. The decline in activity was mostly due to temporary business closures, and the economy has bounced back noticeably in recent months as businesses reopen and fiscal support was distributed to many Americans.