print an unlimited amount of money and basically until recently in a nontransparent way give it to banks who are too big to fail they can park their money gain interest on it and at the same time you got businesses starving for cash in my area there are some public policy questions go ahead mister murphy well right my point was a lot of peopleh and i would subscribe to this viewh would say that there should be no such entity that can just create a trillion dollars out of thin air and hand it to rich people that you don't need to say well who should run this organization there wasn't always a fed so you  we have twelve regional fed banks and two of them are in missouri i don't think anyone would set it up that way today the idea that you would give the financial industry the banking industry a major direct say in monetary policyh which the structure of the fed does it is not just that they have advice they basically appoint twelve of the nineteen people who sit on the fed's open market committee five of the voting membersh i think that is really hard to justify so i think having the entity that controls monetary policy whether it is the fed or we give a different name to it i think having that directly answerable to congress certainly makes sense and you know again one could think of how best to structure that i for one wouldn't say i necessarily want as much respect as i have for the members of the committee i don't want the members of documented was after a severe financial crisis economies grow more slowly than before for the entire decadeh a point and a half slower in the decade after a crisis than before the crisis so the real macroeconomy is going to probably be growing only around the rate of growth of its potential it is going to take a long time for the unemployment rate to come down in that environment we are probably in for a spell of subpar economic legislation saying we are going to expand dramatically drilling and exploration and get the resources out there most likely that would have an impact on the price of oil not in the eight to hyears that people say it takes to get the product to market but when it is actually done when inflation well into the future so i am not concerned on the inflation part i am very concerned about bad policy giving us slow growth and in the short term i don't see any alternative to the deficits boosting the economy because the private sector is not about i certainly don't see any  trying to counter with that the other part of the story of course when you look at trying to rebalance the economy the only way i see to do that in the long term is with net exports which involves a falling dollar i don't know any other way to do that mister jordan i ran over my time three times in a row mister ranking  potential for an alliance between conservatives in the house and those who are not conservative or even liberal on some of these economic issues especially with respect to the role of the fed that is not a small matter and i appreciate that you called this doctor baker could you take a few minutes to explain the relevance of price inflation here and explain to us the relationship between the price americans see at the gas pump and the supply of money do you have any thoughts on that mister baker well in principle what you can expect is that in ordinary circumstances gas prices rise with other prices that is clearly not the sort of story that we are seeing today so a conventional story of inflation driven by the money supply is that we throw out a lot of money which we have done and then in responseh and this has not happenedh you would see all prices rising more or less at the same rate you shouldn't expect to see changes in relative prices so we see gas depending what we want to use a starting point but let's say we go back to two dollars fifty cents a gallon and now we are at four dollars we seeing an increase on the order of hpercent in the price of gas we don't see anything like that almost anywhere else in the economy we don't see that with rents we don't see that with medical i mean i know you have said this before but mister baker so what i am saying is that on the one hand you have sort of the fundamentals of the market playing a very important role that you have had rapid growth in the developing world that is increasing demand for oil that is going to continue the second issue is th instability which has to some extent affected the supply it hasn't hugely affected it but to some extent affected the supply the instability in the middle east that could turn out to be a major factor in terms of actually affecting the supply if it were the case for example that libya's oil were  to come off world markets that we would lose the supply from there or one of the other major producers in the middle east and then the third factor is simply that we clearly have some speculation in the market people are betting that prices will be higher and they are trying to take advantage of that and pick up the gains and that here i think the chair has created a forum here for an important hearing and i look forward to working with you as we continue to try to find ways of letting our constituents know exactly what is going on and you know what we can do about it to try to take a new direction and you know finally one of the things that i have advocated immediately with respect to the extraordinary profits that these oil companies are profits that is the difference to try to find a way to try to discipline the oil companies so they aren't stealing from our constituents so i appreciate the chair's opportunity to be here and i look forward to continuing to work with you  i appreciate the ranking member's comments and input and help with the committee just a quick response to the windfall profits suggestion probably not going to go there as you would expect but i have yet to figure out how raising