If we were more philosophically aligned, I think Matthew and I would hold very similar policy views, indeed:
…This is pie-in-the-sky, but I think that if Congress wants to get serious about supervising the Fed better what they ought to do is scrap the “dual mandate” in favor of something clearer. The nature of the dual mandate is that it’s impossible to say if the Fed is meeting its mandate, and thus impossible to hold anyone accountable.
But the most important part of “financial reform” isn’t much financial at all: redraft the charter so that the Federal Reserve is governed by a contract which states that the institution must set a nominal goal variable, and do everything in their power to hit that variable. Stabilize the growth path of NGDP, and financial panics have a funny way of working themselves out fairly quickly and painlessly.
Sounds like a good idea to me.