Professor Richard Werner, interest rates do not drive the economy.
Professor Werner talks about the empirical study he made about nominal interest rates and economic growth. The facts suggest clearly that interest rates do not drive the economy and they are not negatively correlated. This would mean that monetary policy, as used by central banks, would, at best, be very ineffective. Professor Richard A. Werner holds a First Class Honours B.Sc. in Economics from the London School of Economics and a doctorate in Economics from the University of Oxford. He has also studied at the University of Tokyo. Richard is a Member of Linacre College, Oxford, and is a university professor in banking and finance. He is also a founding chair of Local First, a community interest company establishing not-for-profit community banks in the UK (including the Hampshire Community Bank). Until February 2019, Richard was for many years a member of the ECB Shadow Council. His work experience includes: chief economist at Jardine Fleming Securities (Asia) Ltd., a stint as Senior Managing Director at Bear Stearns Asset Management Ltd., many years managing global macro funds, several years as senior consultant to the Asian Development Bank and periods as visiting scholar and visiting researcher at the Japanese Ministry of Finance and the Bank of Japan, respectively. His book ‘Princes of the Yen’ was a No. 1 bestseller in Japan, beating Harry Potter for six weeks.