Here, Kashyap and Mishkin put on their apologist hats for the Fed. What would you expect from a former governor of the Board of Governors of the Federal Reserve System?
Kashyap and Mishkin write to oppose the bill introduced by Ron Paul that calls for auditing the Fed. They do so in the name of central bank independence, claiming as the Fed and its apologists always do, that the Fed must be independent of the government to control run away inflation.
No, to control run away inflation, the Fed needs not to exist, as Ron Paul explains in his book End the Fed. The Fed is part of the government; it is not independent of the government. History shows plainly enough that it is the Fed that exacerbates --- if not causes --- booms and busts in the U.S. Economy.
Since 1913 when the Fed was born, the purchasing power of the dollar has gone from $1 to about 19 cents. I wouldn't exactly call that controlling inflation.
Sadly, most people do not understand enough about money and banking to understand why and how the Fed brings about inflation. Most people do not understand why and how the Fed causes booms and busts. Why would they? Our government schools don't require students to learn anything about economics, all the way from grade school through college, as a matter of fact. Instead, they learn about the hypothesis of how global warming is caused by excessive CO2 put into the atmosphere by humans trying to better their lives.
The Fed is anything but transparent, regardless of the claims of 400 economists who signed a petition against auditing the Fed. You will notice that Kashyap and Mishkin don't address any of Ron Pauls arguments. No, they just repeat the old, tired, misdirections that the Fed and all the economists who support the idea of a central bank have been mouthing for years.
The Fed and its apologists are not worried that we the people will catch them in the act. They know that the system erected in 1913 is far too complicated and opaque for the common person to understand. Best leave it up to the experts, right?