German economistFor the German sculptor, see Richard Martin Werner.

Richard Andreas Werner (born 5 January 1967) is a German banking and development economist who is a university professor at De Montfort University.

He has proposed the "Quan*y Theory of Credit", or "Quan*y Theory of Disaggregated Credit", which disaggregates credit creation used for the real economy (GDP transactions) on the one hand, and financial transactions on the other hand. In 1995, he proposed a new monetary policy to swiftly deal with banking crises, which he called 'Quan*ative Easing', published in the Nikkei. He also first used the expression "QE2" in public, referring to the need to implement 'true quan*ative easing' as an expansion in credit creation. His 2001 book 'Princes of the Yen' was a number one general bestseller in *an. In 2014 he published the first empirical evidence that each bank creates credit when it issues a new loan.

Contents

• 1 Early life
• 2 Career
• 3 Selected works
• 4 Honors
• 5 References
• 6 External links

Early life

In 1989, Werner earned a BSc in economics at the London School of Economics (LSE). During his postgraduate studies at Oxford University he spent over a year in *an, studying at the University of Tokyo and working at the Nomura Research Ins*ute. His DPhil in economics was conferred by Oxford. In 1991, he became European Commission-sponsored Marie Curie Fellow at the Ins*ute for Economics and Statistics at Oxford. His 1991 discussion paper at the ins*ute warned about the imminent 'collapse' of the *anese banking system and the threat of the "greatest recession since the Great Depression". In Tokyo, he also became the first Shimomura Fellow at the Research Ins*ute for Capital Formation at the Development Bank of *an. He was a Visiting Researcher at the Ins*ute for Monetary and Economic Studies at the Bank of *an; and he was a Visiting Scholar at the Ins*ute for Monetary and Fiscal Studies at the Ministry of Finance.

Career

Werner was chief economist of Jardine Fleming from 1994 to 1998 and published several articles on the *anese credit cycle and monetary policy, many of which are in *anese. In 1997, he joined the faculty of Sophia University in Tokyo. Werner was senior managing director and senior portfolio manager at Bear Stearns *et Management. He worked at the University of Southampton for 14 years, mainly as Chair and Professor in International Banking. He is the founding director of the university's Centre for Banking, Finance and Sustainable Development and organiser of the European Conference on Banking and the Economy (ECOBATE), first held on 29 September 2011 in Winchester Guildhall, with Lord Adair Turner, FSA Chairman, as keynote speaker. From 2011 to 2019, he was a member of the ECB Shadow Council.

Werner has developed a theory of money creation called the Quan*y Theory of Credit, which is in line with Schumpeter's credit theory of money. He has argued, since 1992, that the banking sector needs to be reflected appropriately in macroeconomic models since it is the main creator and allocator of the money supply, through the process of credit creation by individual banks.

Werner's book Princes of the Yen, about the modern economic development of *an, including the bubble of the 1990s and subsequent bust, was a number one general bestseller in *an in 2001. The book covers the monetary policy of the Bank of *an specifically and central bank informal guidance of bank credit in general.

Werner proposed a policy he called "quan*ative easing" in *an in 1994 and 1995. At the time working as chief economist of Jardine Fleming Securities (Asia) Ltd. in Tokyo, he used this expression during presentations to ins*utional investors in Tokyo. It is also, among others, in the *le of an article he published on September 2, 1995, in the Nihon Keizai Shinbun (Nikkei). According to Werner, he used this phrase in order to propose a new form of monetary stimulation policy by the central bank that relied neither on interest rate reductions (which Werner claimed in his Nikkei article would be ineffective) nor on the conventional monetarist policy prescription of expanding the money supply (e.g. through "printing money", expanding high-powered money, expanding bank reserves or boosting deposit aggregates such as M2 –all of which Werner also claimed would be ineffective). Instead, Werner argued, it was necessary and sufficient for an economic recovery to boost "credit creation", through a number of measures. He also suggested direct purchases of non-performing *ets from the banks by the central bank; direct lending to companies and the government by the central bank; purchases of commercial paper, other debt, and equity instruments from companies by the central bank; and stopping the issuance of government bonds to fund the public sector borrowing requirement, instead having the government borrow directly from banks through a standard loan contract.

Werner is founding director and chairman of Local First Community Interest Company, which promotes the establishment of not-for-profit local community banks, modelled on the successful German local co-operative, Raiffeisen and Spark*e savings banks that have enabled German small firms to become top exporters and job creators in Germany.

In 2019, Werner took out a discrimination case against his employer, Southampton University, claiming he was discriminated against and ‘victimised’ in a ‘har*ment and bullying’ campaign for being German and Christian, during his 14 years career at the university. The £2.5m payout was one of the largest awards ever made by a British tribunal and was so high because the university failed to defend itself. In July 2019, after a successful appeal by the University, the judgement was set aside and the case was set to proceed in the usual fashion. Werner was then, in August 2020, granted permission to appeal the decision in the Employment Appeal Tribunal. In the meantime Werner brought a discrimination claim against the University of Cambridge after they withdrew a conditional offer of employment in 2018.

Selected works

Books

• Ryan-Collins, Josh; Werner, Richard; Jackson, Andrew (2012). Where Does Money Come From?: A Guide to the UK Monetary & Banking System (2nd:ed.). London: New Economics Foundation. p.:178. ISBN:978-1908506238. OCLC:816167522.
• Neue Wirtschaftspolitik, München: Vahlen Verlag (2007) - New Economic Policy, Munich: Vahlen Publishing House (2007)
• New Paradigm in Macroeconomics: Solving the Riddle of *anese Macroeconomic Performance (2005)
• Princes of the Yen: *an's central bankers and the transformation of the economy (2001) 2nd edition 2018 by Quantum Publishers
• 『虚構の終焉』 = Towards a new macroeconomic paradigm. Tokyo: PHP. (2003)
• 『謎解き!平成大不況:: 誰も語らなかった「危機」の本質』 = The enigma of the great recession (2003)
• Three essays on *anese macroeconomic policy in the 1980s and 1990s (2006)
• 『福井日銀・危険な素顔』 =　The Bank of *an under Toshihiko *ui, with M. Ishii. Tokyo: Appuru Shuppan. (2003)
• 『不景気が終わらない本当の理由』 =　Central Banking and Structural Changes in *an and Europe. Tokyo: Soshisha. (2003)
• Dismantaling the *anese Model, with M. Kikkawa. Tokyo: Kodansha. (2003)
• Princes of the Yen, *an's Central Bankers and the Transformation of the Economy. New York: M.E. Sharpe.
• 『円の支配者』. Tokyo: Soshisha (2001)

Chapters

• 1998 – "Bank of *an window guidance and the creation of the bubble," in: Rodao, F. and A. Lopez Santos (eds.), El *on Contemporaneo, Salamanca: University of Salamanca Press
• 2002 – "Macroeconomic Management in Thailand: The Policy-induced Crisis," in: Rhee, G.S. (eds.), Rising to the Challenge in Aisa: A Study of Financial Markets, Vol. II, Thailand, Manila: Asian Development Bank
• 2006 – "The relationship between interest rates and economic activity: How the conventional literature has dealt with the *anese experience," in: Batten, J.A., Fetherston, T.A. and Szilagyi, P.G. (eds.), *anese Fixed Income Markets: Money, Bond and Interest Rate Derivatives, Amsterdam: Elsevier (pp.:135–170)
• 2007 – "Europe’s choice and lessons from *an: supply vs. demand policy, fiscal vs. monetary policy," in: Terzi, A. and J. Bibow (eds.), Euroland and the World Economy: Global Player or Global Drag, Basingstoke: Palgrave Macmillan
• 2007 – "The cause of *an’s recession and the lessons for the world," in: Bailey, Coffey and Tomlinson (eds), Crisis or Recovery: Industry and State in *an. Cheltenham: Edward Elgar
• 2008 – "Was sind die Voraussetzungen fuer ein gesundes Wirtschaftswachstum ohne Bankenprobleme?," in: Carl Spaengler KAG (ed.), 20 Fragen zur Geldanlage. Salzburg: Carl Spaengler Kapitalanlagegesellschaft mbH.

Journals

• 1994 – Werner, Richard A. (1994). "*anese Foreign Investment and the "Land Bubble"". Review of International Economics. 2 (2): 166–178. doi:10.1111/j.1467-9396.1994.tb00038.x.
• 1997 – Werner, R. A. (July 1997). "Towards a new monetary paradigm: a quan*y theorem of disaggregated credit, with evidence from *an". Kredit und Kapital. 30: 276–309.
• 2002 – Werner, Richard A. (2002). "Monetary Policy Implementation in *an: What They Say versus What They do". Asian Economic Journal. 16 (2): 111–151. doi:10.1111/1467-8381.00145.
• 2003 – Werner, Richard A. (2002). "Post-Crisis Banking Sector Restructuring and Its Impact on Economic Growth". *anese Economy. 30 (6): 3–37. doi:10.2753/JES1097-203X30063. S2CID:154398385.
• 2003 – Werner, Richard A. (2002). "Aspects of Career Development and Information Management Policies at the Bank of *an". *anese Economy. 30 (6): 38–60. doi:10.2753/JES1097-203X300638. S2CID:154924035.
• 2003 – Werner, Richard A. (2002). "A Reconsideration of the Rationale for Bank-Centered Economic Systems and the Effectiveness of Directed Credit Policies in the Light of *anese Evidence". *anese Economy. 30 (3): 3–45. doi:10.2753/JES1097-203X30033. S2CID:153927778.
• 2004 – Werner, Richard A. (2004). "No Recovery without Reform? An Evaluation of the Evidence in Support of the Structural Reform Argument in *an". Asian Business & Management. 3: 7–38. doi:10.1057/palgrave.abm.9200077. S2CID:154783685.
• 2009 – Werner, Richard A. (6 June 2009). "Financial crises in *an during the 20th century". Bankhistorisches Archiv. 47: 98–123.
• 2011 – Voutsinas, Konstantinos; Werner, Richard A. (2011). "Credit supply and corporate capital structure: Evidence from *an". International Review of Financial *ysis. 20 (5): 320–334. doi:10.1016/j.irfa.2011.05.002.
• 2011 – Chen, Yuanquan; Werner, Richard A. (2011). "The role of monetary aggregates in Chinese monetary policy implementation". Journal of the Asia Pacific Economy. 16 (3): 464–488. doi:10.1080/13547860.2011.589633. S2CID:153679115.
• 2011 – Werner, Richard (2011). "Economics as if Banks Mattered: A Contribution Based on the Inductive Methodology". The Manchester School. 79: 25–35. doi:10.1111/j.1467-9957.2011.02265_5.x.
• 2012 - Lyonnet, Victor; Werner, Richard (2012). "Lessons from the Bank of England on 'quan*ative easing' and other 'unconventional' monetary policies". International Review of Financial *ysis. 25: 94–105. doi:10.1016/j.irfa.2012.08.001.
• 2012 - Werner, Richard A. (2012). "Towards a new research programme on 'banking and the economy' — Implications of the Quan*y Theory of Credit for the prevention and resolution of banking and debt crises" (PDF). International Review of Financial *ysis. 25: 1–17. doi:10.1016/j.irfa.2012.06.002.
• 2013 - Werner, Richard A. (2013). "Towards a More Stable and Sustainable Financial Architecture – A Discussion and Application of the Quan*y Theory of Credit". Credit and Capital Markets – Kredit und Kapital. 46 (3): 357–387. doi:10.3790/ccm.46.3.357.
• 2013 - Werner, Richard A. (2013). "Commentary". Environment and Planning A: Economy and Space. 45 (12): 2789–2796. doi:10.1068/a130106c.
• 2014 - Werner, Richard A. (2014). "Can banks individually create money out of nothing? — the theories and the empirical evidence". International Review of Financial *ysis. 36: 1–19. doi:10.1016/j.irfa.2014.07.015.
• 2014 - Werner, Richard A. (2014). "Enhanced Debt Management: Solving the eurozone crisis by linking debt management with fiscal and monetary policy". Journal of International Money and Finance. 49: 443–469. doi:10.1016/j.jimonfin.2014.06.007.
• 2015 - Werner, Richard A. (2014). "How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking". International Review of Financial *ysis. 36: 71–77. doi:10.1016/j.irfa.2014.10.013.
• 2016 - Werner, Richard A. (2016). "A lost century in economics: Three theories of banking and the conclusive evidence" (PDF). International Review of Financial *ysis. 46: 361–379. doi:10.1016/j.irfa.2015.08.014.
• 2016 - Ryan-Collins, Josh; Werner, Richard A.; Castle, Jennifer (2016). "A half-century diversion of monetary policy? An empirical horse-race to identify the UK variable most likely to deliver the desired nominal GDP growth rate". Journal of International Financial Markets, Ins*utions and Money. 43: 158–176. doi:10.1016/j.intfin.2016.03.009.
• 2018 - Lee, Kang-Soek; Werner, Richard A. (2018). "Reconsidering Monetary Policy: An Empirical Examination of the Relationship Between Interest Rates and Nominal GDP Growth in the U.S., U.K., Germany and *an". Ecological Economics. 146: 26–34. doi:10.1016/j.ecolecon.2017.08.013.
• 2018 - Bermejo Carbonell, Jorge; Werner, Richard A. (2018). "Does Foreign Direct Investment Generate Economic Growth? A New Empirical Approach Applied to Spain". Economic Geography. 94 (4): 425–456. doi:10.1080/00130095.2017.1393312.

Papers

• 1991 – "The Great Yen Illusion: *anese Capital Flows and the Role of Land," Oxford Applied Economics Discussion Paper Series, Oxford: Ins*ute of Economics and Statistics, University of Oxford, No. 129, December
• 1993 – "Towards a quan*y theorem of disaggregated credit and international capital flows," Paper presented at the Royal Economic Society Annual Conference, York, April 1993
• 2010 – Comment on Range of Methodologies for Risk and Performance Alignment of Remuneration , official submission to public call for comments on ‘Range of Methodologies for Risk and Performance Alignment of Remuneration, Consultative Do*ent’ by the Basel Committee on Banking Supervision, 14 October 2010, submitted 31 December 2010.
• 2010 – Towards Stable and Compe*ive Banking in the UK - Evidence for the ICB, submitted to the Independent Commission on Banking, UK (Chair: Professor Sir John Vickers), submitted 19 November 2010
• 2010 – Towards a Twenty-First Century Banking and Monetary System, Joint Submission to the Independent Commission on Banking, UK (Chair: Professor Sir John Vickers), with Ben Dyson, Tony Greenham, Josh Ryan-Collins, by the Centre for Banking, Finance and Sustainable Development, the new economics foundation, and Positive Money, submitted 19 November 2010 PDF
• 2010 – Comment on Strengthening the Resilience of the Banking Sector, official submission to public call for comments on ‘Strengthening the Resilience of the Banking Sector, Consultative Do*ent’ by the Basel Committee on Banking Supervision, September 2009. Submitted 16 April 2010; published by the Bank for International Settlements, Basel.

Honors

• 2003 – World Economic Forum in Davos, "Global Leader for Tomorrow"

References

External links

• Official site