I recently became aware of the Diamond–Dybvig model (which was so influential that Diamond and Dybvig were awarded the 2022 Nobel prize), that argued that depos

I recently became aware of the Diamond–Dybvig model (which was so influential that Diamond and Dybvig were awarded the 2022 Nobel prize), that argued that deposit insurance is really the best way to avoid bank runs. After reading that, a higher FDIC cap became a no-brainer to me. I encourage everyone to check that out.