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Southampton Business School
(023) 8059 2549

Professor Richard Werner BSc (Econ), DPhil (Oxon)

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

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Professor Richard Werner is Chair in International Banking , Director, Centre for Banking, Finance and Sustainable Development; within Southampton Business School at the University of Southampton.


Professor Richard Werner, DPhil (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 a member of the ECB Shadow Council, and 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’.





Research interests

  • 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



Book Section(s)



Professor Richard Werner
Southampton Business School, University of Southampton, Highfield, Southampton SO17 1BJ, UK

Room Number: 2/4075

Telephone: (023) 8059 2549
Facsimile: (023) 8059 3844

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