Crossword Genius

Site old boy set up, producing psychological medicine (7)

Ross

I believe the answer is:

placebo

I'm a little stuck... Click here to teach me more about this clue!

'psychological medicine' is the definition.
'placebo' can be an answer for 'medicine' (placebo is a kind of medicine). I'm not sure about the 'psychological' bit.

'site old boy set up' is the wordplay.
'site' becomes 'place' (synonyms).
'old boy' becomes 'OB' (abbreviation for a private school 'old boy').
'set up' says the letters should be written in reverse (in a down clue, letters go up).
'ob' reversed gives 'bo'.
'place'+'bo'='PLACEBO'

'producing' is the link.

Can you help me to learn more?

(Other definitions for placebo that I've seen before include "Medicine with no therapeutic effect" , "Medicine having no physiological effect" , "Medicine given for its psychological benefit alone" , "memorial service" , "Medicine with no effect used in drug trials" .)

I've seen this clue in The Times.
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