Alan Greenspan's Encounter with Economist Prof. Richard Werner

Prof. Richard Werner, father of Quantity Theory of Credit, tells Bostjan Usenik from Finance Manager about the time the former Chair of the Federal Reserve, Alan Greenspan, requested to read his work on credit creation...

In Richard's Quantity Theorem of Disaggregated Credit, a simple model is proposed that encompasses traditional theory and manages to explain the three main anomalies. It centres on a “quantity theory” framework of credit-money circulation, which is disaggregated into “real” and financial transactions. Excess credit creation in the “financial circulation” is shown to be responsible for asset price booms, the observed velocity decline and, in an open economy extension, foreign investment.

Bostjan Usenik, interviewer & producer of Finance Manager: https://www.youtube.com/channel/UCXbrKRGSn8atZbxtRLWWBYA

For the full interview: https://youtu.be/1a6H7xZvC5Q?si=sCvM67CQURu5rF_F

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