Needless to say, it is essential to accurately gauge the situation on the supply side of the economy in discussing the mechanism of economic recovery and its sustainability, as well as the effects and challenges of monetary policy.
We have sought to accomplish this goal in significant part by reducing both the probability of failure of a large banking firm and the consequences of such a failure were it to occur. As I mentioned, we have substantially increased the capital, liquidity, and other prudential requirements for large banking firms. These measures are not free.