I was just re-reading Richard Werner’s initial quantitative easing scheme for Japan from 1995. What he says is relevant to today’s situation in Europe and the United States as well as for today’s Japan. I want to highlight a few lines within his brief note and expand on these where they don’t make sense.
You may know that Werner, a German economist who was working in Asia as the head of economics at Jardine Fleming Securities in the 1990s is the man who invented the term quantitative easing. His idea was that the central bank and the government would borrow money directly from Japanese commercial banks and that it could purchase private sector assets in order to boost total purchasing power in the economy. His contention is that supply side government intervention would be most effective ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.