incentives of the central bank, the central bank always has a stronger incentive to increase -- to be acome dative and increase credit rather than to be contractionry. i would be more concerned about an emphasis on full employment which is sort of encourages the fed to go in the direction that it wants to go anywhere. i'd be less concerned about it relatively speaking with emphasis on price stability and go against the fed and go in the direction it wanted to go. >> the argument it didn't restrain them is precisely the reason they liked the mandate because it allows them to expand the money at will. and of course we see this as a problem. quick question for dr. taylor you're mfdsing some of these monetary rules. and even more monetary statistics, would you be in favor of the fed once again issuing a report on this size and growth of m 3? >> i would be in favor of the fed doing that. i think it's more emphasis on money statistics, the better in my view. they didn't pay enough attention to that. but i would say from the point of view of the congress it seems to me you want the congress -- the fed to

it's always much easier for the fed to be less acome dative than more. i'm not worried about this astonishing balance sheet. it's very big. right now the reason to worry would be that we had general inflation and we don't. >> i think it would be very hard -- >> we may have to hit the mic. >> i think it would be very hard for the federal reserve to raise interest rates rapidly. and i don't think it's likely to do so. is there a situation and one way to interpret your question a situation in which is marks might sell off u.s. bonds rapidly without that being controllable by monetary policy action. i think that's also unlikely, under present conditions. what the markets have shown us is that in adversity people want to hold u.s. bonds. they want to hold u.s. bonds over practically any other asset because twer largest, most liquid and completely reliable market many the world for safe liquid assets. >> i'm sorry how much more capacity do you believe is pragmatic for the fed to continue to grow at? do they go to a $4 trillion, tlrs 5 trillion. how dig do the