Princes of the Yen: Japan‘s Central Bankers and the Transformation of the Economy

Richard A. Werner's book, "Princes of the Yen: Japan's Central Bankers and the Transformation of the Economy," focuses on his critique of central banking and Japan's economic history. The sources highlight Werner's argument that central banks, particularly the Bank of Japan (BoJ), actively manipulate economies through credit creation and allocation, often against public interest and without accountability. It explores how Japan's postwar "economic miracle" was a continuation of its wartime mobilized economy, where growth was prioritized over profits and directed by bureaucrats and banks. The text further details the BoJ's role in creating and then prolonging Japan's "bubble economy" and subsequent recession in the 1990s by controlling credit, despite official claims of using interest rates. Finally, the excerpts touch upon the broader implications of central bank independence and propose alternative monetary policies to foster genuine economic recovery and decentralize financial power.