That persistent and prolonged deviation from equilibrium revealed, in a fundamental sense, the authentic nature of reality, which today, in a stable, low-inflation world, has become more difficult to extract from the data. And so, in the same way as the experience  4  See Lucas (2006). 5  See Goodhart (2006). 6  Exemplified in the work of Michael Woodford.
This proposal would, among other things, allow the FDIC to continue to protect insured depositors while making clear to uninsured depositors that they could suffer losses in the event of the failure of even a very large bank. Thus, these changes would greatly enhance market discipline and help ensure that no bank is too big to fail.