Richard Werner and his Princes of the Yen
Richard Werner is that one of the economists who has pioneered in the empiricism where the hatchet was still to be dug out. He is the one who carried out the three major pre assumed tenets of the Banking theories and stated them into the empirical evidences and took out some of the amazing analysis out of it.
He firstly asked the people that can bank (commercial) individually create money out of nothing ? Prior to his research release, there were no any such researches that could really answer this big quandary. He sorted some of the literatures on whether banks can create money or not and he empirically tested and found out the results that were truly out of the arena.
Over there, he questioned the three theories of banking credit creation that we, general people are more or less are aware of. The Credit creation Theory, The Fractional Reserve Theory and The Financial Intermediation Theory. He empirically conducted a survey on sync with these three theories withdrawing some of the money from the bank., that was some 200K Euros and then eventually he compared Bank Credit accounting according to the credit creation theory , credit accounting according to the Fractional Reserve Theory and the Credit accounting according to the Financial Intermediation Theory.
He kind of a like parted a collaboration with bank and inspected with the new bank account of him which was created in the name of his balances. He studied the complex structure of the real money formation and eventually discarded three of the stated theories and reached to the conclusions that there a different channel, which maybe is simply unseen that creates money out of nothing.
The Princes if the Yen
While Richard was in Japan, he had stated the Central Bank of Japan then with the upcoming recessions and to his word that even amazes me out is that, the Japanese folks stated that the boom and the bust cycles were created knowingly to lead an economy on the lash. From that statement it's also clear that central bank have the power to create the boom and bust cycles.
The Princes of the Yen is one of the book of Justice that I have read it so far. It explains who actually is the Princes of the Yen and what is the really outlook of then Japanese Economy and the role of central banking over there (there will be a book review kept after some days).
Thank You
Aditya Pokhrel
P.S Comments are lauded.
