How Central Banks Can Avoid Repeated Bank Crises

Prof. Richard Werner, author of Japanese #1 bestseller 'Princes of the Yen', is interviewed by Bostjan Usenik from Finance Manager on how a central bank, namely ECB, can avoid repeated boom bust cycles by changing their policy:

Have positive short term rates;
Slow/stop bond purchases;
Encourage banks to create credit for productive business investment;
Lower the risk-weighting associated with lending to productive SMEs;
Increase the risk-weighting associated with property and other financial lending;
Decentralise the banking system by setting up not-for-profit community banks to support local businesses and pump profits back into local community initiatives

Richard Werner, interviewee
Bostjan Usenik, interviewer & producer of Finance Manager: https://www.youtube.com/channel/UCXbrKRGSn8atZbxtRLWWBYA
For the full interview: https://www.youtube.com/watch?v=1a6H7xZvC5Q&t=0s
Printed version of the interview in Finance Manager magazine: https://www.finance.si/manager/%28intervju%29-richard-werner-ekonomist-stop-sovjetizaciji-bank/a/8967790

Subscribe to Prof. Richard Werner's substack: https://rwerner.substack.com