The Secrets of the Financial System | Richard Werner | TEDxAISB Youth

In this eye-opening talk, economist Richard Werner reveals the hidden mechanics of our financial system, exposing why mainstream economics consistently fails to predict crises and inflation. He dismantles the myth that banks merely lend existing money, showing instead how they create money with every loan—shaping economies and driving inequality. Drawing on his groundbreaking research and the explosive success of East Asia’s decentralized banking model, Werner makes a bold case for local banking as the key to sustainable prosperity, warning against central bank digital currencies and the dangers of centralized financial control. If you think money comes from the government or the central bank, this talk will change everything you thought you knew. Richard A. Werner is a German economist renowned for his contributions to banking, monetary policy, and economic development. In 1995, he introduced the term "quantitative easing" to describe a policy aimed at expanding credit creation to stimulate economic recovery.

Werner earned a B.Sc. in Economics with First Class Honours from the London School of Economics and a D.Phil. in Economics from the University of Oxford. His academic career includes positions at Sophia University in Tokyo, Goethe University Frankfurt, the University of Southampton, and Fudan University in Shanghai.

He has advised central banks, governments, and international organizations, including the Bank of Japan and the Asian Development Bank.

His book Princes of the Yen became a bestseller in Japan, offering insights into the role of central banks in economic cycles. This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx