Professor Richard Werner

Contact Details

Room: 2/4075


Phone: +44 (0)23 8059 2549

Chair in International Banking; Director, Centre for Banking, Finance and Sustainable Development

Professor Richard Werner, D.Phil. (Oxon) obtained his first degree in economics from the London School of Economics with first class honours. His doctoral thesis at the University of Oxford was on monetary economics and economic policy. Richard has been at the University of Southampton since 2004, first as Reader and since 2005 as Professor and Chair in International Banking. Richard is the founding chairman of Local First Community Interest company, which introduces not-for-profit community banks in the UK, and Convenor of the Association for Research on Banking and the Economy (ARBE). Since 2011, Richard has been organising the European Conference on Banking and the Economy (ECOBATE), which has been held regularly at Winchester Guildhall, featuring, among others, Lord Adair Turner, Sir John Gieve, John Kay and The Right Hon. Dr. Vince Cable, MP, among many others.

From 2009 to 2012 Richard was Visiting Professor at House of Finance, Goethe University Frankfurt. Prior to Southampton, Richard was tenured Assistant Professor in Economics at Sophia University, Tokyo, and Marie Curie European Commission Doctoral Fellow at the Institute of Economics and Statistics at the University of Oxford.

Richard has gained extensive experience in the private sector, among others as researcher, economist, strategist, fund manager and entrepreneur (including as chief economist at Jardine Fleming Securities (Asia) Ltd., foreign scholar at the Ministry of Finance Japan, visiting researcher at the Bank of Japan, first Shimomura Fellow at the Development Bank of Japan, senior consultant at the Asian Development Bank, senior managing director and senior portfolio manager at Bear Stearns Asset Management). He has also been a member of several corporate boards, including the asset allocation board of the TelWel (US$5.6bn) pension fund, the executive board of the Southampton Management School and the supervisory board of several major companies, where he has also served as chairman of the audit committee.

Richard proposed the Quantity Theory of Credit in 1992, which argues that bank credit creation for GDP transactions determines nominal GDP growth, while bank credit for non-GDP transactions causes asset price boom-bust cycles and banking crises. In 1995, he proposed a new monetary policy to expand bank credit for the real economy, which he called ‘quantitative easing’. His book ‘Princes of the Yen’ (2003) became a no. 1 bestseller in Japan, beating Harry Potter for six weeks. In the English version Richard warned that the ECB was likely to create credit booms, asset bubbles, banking crises and recessions in the eurozone (a documentary movie about the book was launched in 2014). His 2005 book ‘New Paradigm in Macroeconomics’ (Palgrave Macmillan) warned of the recurring banking crises following asset bubbles and suggested workable solutions. Since the crisis, his approach to disaggregate bank credit and focus on bank credit for the real economy to model nominal GDP growth has found supporters among a number of central banks. His co-authored book Where Does Money Come from? has attracted much attention and citations, including by the Bank of England. 

In 2014, Richard published the first empirical test of the various theories of banking, demonstrating for the first time in the history of banking that banks do not lend money, but instead newly create credit and money.

Some of Richard’s work featured prominently in the financial press, attracting interest, among others, from Alan Greenspan. Richard has appeared frequently on Japanese and international television commenting on economic and financial affairs. In 2003, the World Economic Forum, Davos, selected him as ‘Global Leader for Tomorrow’.


Member of:

Centre for Banking, Finance and Sustainable Development (CBFSD) CoE for Decision, Analytics & Risk Reseach (CEDARR) CoE for Accounting, Finance and International Banking (CAFIB)

  • Banking
  • Banking and the Economy
  • Banking and Development
  • History of Banking
  • Central Banking
  • Monetary Economics
  • Macroeconomics
  • International Economics
  • Development Economics
  • History of Economic Thought
  • Methodology in Economics
  • Comparative Economic and Financial Systems
  • Portfolio Management and Asset Allocation
  • Forecasting

Work in progress

The global financial crisis: causes, consequences and solutions;
Determinants of real estate prices in the UK and Japan;
Monetary policy implementation in China;
Foreword for Korean edition of 'Princes of the Yen';
New edition of 'New Paradigm in Macroeconomics';
Policy debate papers for the Centre of Banking, Finance and Sustainable Development Policy Debate Series

Group by: Type | Year | First Author

Werner, Richard A. (2004) An alternative rationale for the introduction of bank-centered economic systems in Germany and Japan and a re-evaluation of their efficacy. In, Economic History Society Annual Conference, London, UK, 02 - 04 Apr 2004. London, UK, Royal Holloway, University of London.

Vogel, Harold and Werner, Richard A. (2014) An analytical review of volatility metrics for bubbles and crashes. International Review of Financial Analysis, 1-53. (doi:10.1016/j.irfa.2014.11.003). (In Press).

Werner, R.A. (2004) Aspects of career development and information management policies at the Bank of Japan - a frank interview with a former central banker. The Japanese Economy, 30, (6), 38-60.

Werner, R.A. (2006) Aspects of German monetary and development economics and their reception in Japan. In, Stathakis, Yiorgos and Vaggi, Gianni (eds.) Economic Development and Social Change. London, UK, Routledge. (Routledge Studies in the History of Economics).

Werner, R.A. (2001) Bank of Japan must pay for economic clean-up. Financial Times

Werner, R.A. (2003) Banking sector restructuring and macroeconomic stability. Sophia International Review, 25

Werner, R.A. (2009) Bernanke's speech shows where BOJ failed. Daily Yomiuri

Werner, R.A. (2005) Beruht der Ruf nach Reformen auf Tatsachen? WISO Wirtschafts- und Sozialpolitische Zeitschrift, 28, (1), 85-108.

Werner, R.A. (2001) Book review. Japanese business management: restructuring for low growth and globalisation, edited by Harukiyo Hasegawa and Glenn D. Hook. Review of International Economics, 9, (3), 570-572. (doi:10.1111/1467-9396.00299).

Werner, Richard A. (2014) Can banks individually create money out of nothing? — The theories and the empirical evidence. International Review of Financial Analysis, 36, 1-19. (doi:10.1016/j.irfa.2014.07.015).

Werner, Richard A. (2007) The cause of Japan's recession and the lessons for the world. In, Bailey, David, Coffrey, Dan and Tomlinson, Phil (eds.) Crisis or Recovery in Japan: State and Industrial Economy. Cheltenham, Edward Elgar.

Thomas, S. and Werner, R. (2005) Central bank independence. Financial Times

Werner, Richard A. (2003) Central banking and structural changes in Japan and Europe, Tokyo, Japan, Soshisha Press

Werner, Richard A. (2009) Central Banking and the Governance of Credit Creation. In, Where Next for International Financial Regulation?, Copenhagen, DK, Danish Institute for International Studies.

Werner, Richard A. (2010) Comment: Methodologies for risk and performance alignment of remuneration [submission to the Basel Committee for Banking Supervision by Professor Richard A. Werner, University of Southampton]. Southampton, GB, University of Southampton, 2pp.

Werner, Richard A. (2010) Comment: Strengthening the resilience of the banking sector [submission to the Basel Committee for Banking Supervision (BCBS)]. Southampton, GB, University of Southampton, 14pp.

Werner, Richard A. (2006) A comparative analysis of the independence of the ECB, the Bundesbank and the Reichsbank. International Finance Review, 6, 1-16.

Werner, Richard A. (2009) A Comparative Study of Selected 20th Century Banking Crises in Japan and Implications for Theory and Policy. Southampton, GB, University of Southampton (Centre for Banking, Finance and Sustainable Development Discussion Series, 1/09).

Werner, R. A. (2007) Credit and growth in different rationing regimes - Some implications for inflation, government intervention and institutional design. In, 24th International Symposium on Money, Banking and Finance, Rennes, France,

Werner, R. A. (2008) Credit Creation: The Holy Grail of Asset Allocation/ Alpha Generation and Implications for Risk Management. In, Nomura Global Quantitative Investment Strategies Conference 2008 , New York, USA, Nomura.

Voutsinas, Konstantinos and Werner, Richard (2011) Credit supply and corporate capital structure: evidence from Japan. International Review of Financial Analysis, 20, (5), 320-334. (doi:10.1016/j.irfa.2011.05.002).

Kikkaawa, M. and Werner, R.A. (2003) Dismantaling the Japanese Model, Tokyo, JP, Kodansha

Werner, Richard A. (2012) ECOBATE 2013 Call for Papers. In, 2nd European Conference on Banking and the Economy (ECOBATE 2013), Winchester, GB, 06 Mar 2013. 1pp.

Werner, Richard (2011) Economics as if banks mattered: a contribution based on the inductive methodology. [in special issue: Papers in Money, Macroeconomics and Finance] The Manchester School, 79, supplement s2, 25-35. (doi:10.1111/j.1467-9957.2011.02265_5.x).

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, 1-27. (doi:10.1016/j.jimonfin.2014.06.007).

Werner, R.A. (2004) The enigma of Japan's recession and its challenge to mainstream economics. In, Open Seminar, Sheffield, UK, School of East Asian Studies, University of Sheffield.

Werner, Richard (2003) The enigma of the great recession, Tokyo, Japan, PHP Institute Press

Werner, R.A. (2003) The "Enigma" of Japanese policy ineffectiveness: the limits of traditional approaches, not cyclical policy. The Japanese Economy, 30, (1), 25-95.

Werner, Richard A. (2012) The Euro-crisis: a to-do-list for the ECB. Southampton, GB, University of Southampton (Centre for Banking, Finance and Sustainable Development Policy Discussion Paper 1-12). (In Press)

Werner, Richard A. (2009) Financial crises in Japan during the 20th century. Bankhistorisches Archiv, 47, 98-123.

Werner, Richard A. (2011) Further fiscal union not needed in Europe. Daily Yomiuri

Werner, R. (2007) Germany's choice and lessons from Japan: supply vs. demand policy, fiscal vs. monetary policy. In, Bibow, Jörg and Terzi, Andrea (eds.) Euroland and the World Economy: Global Player or Global Drag? Basingstoke, UK, Palgrave Macmillan, 184-214.

Werner, R.A. (2005) Global macro in Asia: how to create a currency, bond and equity portfolio in Asia. In, Annual Conference on Asian Hedge Funds, Geneva, Switzerland,

Werner, Richard A. (2004) The Greenspan of Japan. Newsweek, 56.

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 Analysis, 36, 71-77. (doi:10.1016/j.irfa.2014.10.013).

Werner, Richard A. (2012) How to end the European crisis – at no further cost and without the need for political changes. Southampton, GB, University of Southampton, 12pp. (Centre for Banking, Finance and Sustainable Development Policy Discussion Paper, 2-12).

Werner, R.A. (2002) How to get growth in Japan. Central Banking, XIII, (2), 48-54.

Lyonnet, Victor and Werner, Richard A. (2012) Lessons from the Bank of England on 'quantitative easing' and other 'unconventional' monetary policies. [in special issue: Banking and the Economy] International Review of Financial Analysis, 25, 94-105. (doi:10.1016/j.irfa.2012.08.001).

Werner, R. A. (2009) Lessons from the Global Crisis: A new Paradigm? In, 2nd Mecpoc Symposium , Franklin College.

Thomas, S. and Werner, R.A. (2004) Letters to the Editor: Has Bank paid enough attention to preventing a housing bubble? Financial Times, p.18.

Werner, R.A. (2002) Letters To The Editor: South African central bank responsible for fall in rand. Financial Times, 9 April, P.20.

Werner, R. A. (2007) The link between fiscal and monetary policy - lessons for Germany from Japan. In, Hein, Eckhard and Truger, Achim (eds.) Money, Distribution and Economic Policy : Alternatives to Orthodox Macroeconomics. Cheltenham, UK, Edward Elgar, 186-215.

Werner, R.A. (2001) The long recession: a decade of pain, now for the gain... The Euro-Japanese Journal, 7, (2)

Werner, Richard A. (2002) Monetary policy implementation in Japan: what they say versus what they do. Asian Economic Journal, 16, (2), 111-151. (doi:10.1111/1467-8381.00145).

Werner, R.A. (2004) New paradigm in macroeconomics and economic development: a critique of neoclassical economics. In, Guest Lecture School of Oriental and African Studies, University of London.

Werner, Richard (2005) New paradigm in macroeconomics: solving the riddle of Japanese macroeconomic performance, Basingstoke, Palgrave Macmillan, 440pp.

Werner, R.A. (2004) No recovery without reform? An evaluation of the evidence in support of the structural reform argument in Japan. Asian Business and Management, 3, (1), 7-38. (doi:10.1057/palgrave.abm.9200077).

Werner, R.A. (2009) Policy debate: understanding the credit crisis: why banks collapsed - and with them the mainstream paradigm in economics and finance. Southampton, UK, University of Southampton (Discussion Papers in Centre for Banking, Finance and Sustainable Development).

Werner, R.A. (2002) Post-crisis banking sector restructuring and its impact on economic growth. The Japanese Economy, (6), 3-37.

Werner, Richard A. (2003) Princes of the Yen: Japan's central bankers and the transformation of the economy, New York, USA, M.E. Sharpe, 320pp.

Werner, R.A. (2003) A reconsideration of the rationale for bank-centred economic systems and the effectiveness of directed credit policies in the light of Japanese evidence. The Japanese Economy, 30, (3), 3-45.

Werner, R.A. (2006) The relationship between interest rates and economic activity: How the conventional literature has dealt with the Japanese experience. In, Batten, J.A., Fetherston, T.A. and Szilagyi, P.G. (eds.) Japanese Fixed Income Markets: Money, Bond and Interest Rate Derivatives. Amsterdam, Holland, Elsevier, 135-170.

Werner, Richard A. (2003) Response to William W. Grimes, "Comment on Richard Werner's" The Enigma of Japanese Policy Ineffectiveness: The Limits of Traditional Approaches, Not Cyclical Policy". The Japanese Economy, 31, (1(Spring 2003)), 82-96.

Werner, Richard A. (2005) Revisiting the link between fiscal and monetary policy - an alternative framework with special reference to fiscal policy effectiveness under EMU. In, Macroeconomics and Macroeconomic Policies - Alternatives to the Orthodoxy. 9th Workshop of the Research Network Alternative Macroeconomic Policies, Berlin, Germany, 28 - 29 Oct 2005. Berlin, Germany,

Chen, Yuanquan and 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).

Werner, R.A. (2009) Selective award of a public privilege: an analytical evaluation of a potential obstacle to the growth of not-for-profit financial institutions in the UK. Southampton, UK, University of Southampton (Discussion Papers in Centre for Banking, Finance and Sustainable Development).

Werner, Richard (2005) Solving the riddle of Japanese macroeconomic performance in the 1980s and 1990s. In, Nissan Institute Seminar in Japanese Studies, Oxford, UK, 24 Oct 2005. Nissan Institute of Japanese Studies, University of Oxford and International Relations Department, London Metropolitan University.

Werner, R.A. (2002) Stock Market Capitalism: Welfare Capitalism, Japan and Germany versus the Anglo-Saxons, by Ronald Dore. Journal of Economics Literature, 40, (4), 1279-1280.

Werner, Richard A. (2012) Towards a new research programme on ‘banking and the economy’ - implications of the quantity theory of credit for the prevention and resolution of banking and debt crises. [in special issue: Banking and the Economy] International Review of Financial Analysis, 25, 1-17. (doi:10.1016/j.irfa.2012.06.002).

Werner, Richard (2010) Towards stable and competitive banking in the UK - evidence for the Independent Commission on Banking (ICB). Southampton, GB, University of Southampton, 23pp. (CBFSD Policy Discussion Paper, 3/1-1-).

Bernardo, Giovanni, Ryan-Collins, Josh and Werner, Richard A. (2013) UK QE reconsidered: the real economy effects of monetary policy in the UK, 1990-2012 – an empirical analysis. Southampton, GB, Centre for Banking, Finance and Sustainable Development, University of Southampton (Centre for Banking, Finance and Sustainable Development Policy Discussion Papers).

Werner, Richard A. (2009) Understanding and forecasting the credit cycle - why the mainstream paradigm in economics and finance collapsed. In, QFinance. London, Bloomsbury, 258-261.

Werner, R.A. (2008) The unintended consequences of the debt. Southampton, UK, University of Southampton (Discussion Papers in Centre for Banking, Finance and Sustainable Development, CBFSD-08-02).

ap Gwilym, O., Seaton, J., Thomas, S. and Werner, R. (2006) Valuation rations, stock returns and relative asset volatilities: an international puzzle. Southampton, UK, University of Southampton (Discussion Paper Series: Centre for Risk Research, CRR-06-02).

Werner, R. A. (2008) Was sind die Voraussetzungen fuer ein gesundes Wirtschaftswachstum ohne Bankenprobleme? In, Spaengler, Carl (ed.) 20 Fragen zur Geldanlage, Festschrift zum 20-Jahr-Jubilaeum der Spaengler-Fonds. Austria, Republic of, AT, Carl Spaengler Kapitalanlagegesellschaft mbH.

Werner, R.A. (2006) What accession countries need to know about the ECB: a comparative analysis of the independence of the ECB, the Bundesbank and the Reichsbank. In, Batten, J.A., Kearney, Colm and Choi, J. Jay (eds.) Emerging European Financial Markets: Independence and Integration Post-Enlargement. Oxford, UK, Elsevier, 99-116. (International Finance Review 6).

Ryan-Collins, Josh, Greenham, Tony, Werner, Richard and Jackson, Andrew (2011) Where does money come from? A guide to the UK monetary and banking system, London, GB, New Economics Foundation, 144pp.

Werner, R.A. (2004) Why has fiscal policy disappointed in Japan? Revisiting the pre-Keynesian view on the effectiveness of fiscal policy. In, 21st Symposium on Banking and Monetary Economics, Nice, France, 10 - 11 Jun 2004. University of Nice: Sophia Antipolis.