Richard Werner
Richard Andreas Werner | |
|---|---|
| Alma mater | London School of Economics, University of Oxford, University of Tokyo |
| Occupation(s) | Economist, university professor |
| Years active | 1990s–present |
| Known for | Formulating the Quantity Theory of Credit; author of Princes of the Yen; coined the term "quantitative easing" |
Richard Andreas Werner is a German economist specializing in banking and development, currently serving as a university professor at the University of Winchester. He is the author of the 2001 publication Princes of the Yen.
Early life
Werner completed his Bachelor of Science degree in economics at the London School of Economics (LSE) in 1989. While pursuing postgraduate studies at Oxford University, he spent more than a year in Japan, engaging in academic work at the University of Tokyo and gaining professional experience at Nomura Research Institute. He earned his DPhil in economics from Oxford. In 1991, he was awarded a Marie Curie Fellowship by the European Commission and conducted research at Oxford's Institute for Economics and Statistics. His 1991 discussion paper forecasted an impending crisis in Japan’s banking sector accompanied by a significant economic downturn. In Tokyo, Werner held the distinction of being the inaugural Shimomura Fellow at the Research Institute for Capital Formation within the Development Bank of Japan. Additionally, he undertook visiting researcher positions at both the Bank of Japan and Japan’s Ministry of Finance.
Career
Between 1994 and 1998, Werner acted as chief economist for Jardine Fleming, producing numerous publications on Japan’s credit cycle and monetary policy, including contributions written in Japanese. From 1997 to 2004, he was a tenured assistant professor at Sophia University in Tokyo. Subsequently, he took on roles as senior managing director and senior portfolio manager at Bear Stearns Asset Management. His tenure at the University of Southampton spanned from 2004 to 2018, where he primarily held the position of Chair and Professor specializing in International Banking. Since 2018, Werner has been Professor of Banking and Finance at De Montfort University, where he established the Centre for Banking, Finance and Sustainable Development and has overseen the European Conference on Banking and the Economy (ECOBATE). From 2011 until 2019, he was part of the ECB Shadow Council.
Werner is recognized for formulating the Quantity Theory of Credit, which aligns with Schumpeter’s credit theory related to money. Since 1992, he has maintained that banks are central creators and distributors of money through their credit issuance activities—a dynamic frequently neglected in traditional macroeconomic frameworks.
His book Princes of the Yen examines Japan’s economic trajectory, with particular emphasis on the asset bubble and subsequent collapse during the 1990s, underscoring how the Bank of Japan’s monetary policies and informal directives influenced bank lending practices.
During his time as chief economist at Jardine Fleming Securities (Asia) Ltd. in 1994–95, Werner coined the term "quantitative easing" within Japan while addressing institutional investors and through a 1995 article published in the Nihon Keizai Shinbun. He introduced this concept as an innovative monetary policy aimed at stimulating credit creation rather than relying solely on interest rate reductions or expanding monetary aggregates like M2. His policy proposals advocated for direct central bank interventions such as purchasing non-performing loans, extending credit to corporations and government entities, acquiring commercial paper and equity securities, and restructuring government borrowing to involve direct bank loans instead of bond issuance.
In 2019, Werner initiated legal action against Southampton University alleging discriminatory treatment based on his German nationality and Christian beliefs during his fourteen-year employment there. Initially, a compensation award amounting to £2.5 million was granted after the university did not contest the claims; however, this ruling was later overturned following an appeal. Werner proceeded to challenge this outcome before the Employment Appeal Tribunal. Additionally, he filed a discrimination complaint against the University of Cambridge after they rescinded a conditional job offer made to him in 2018.