Nobel Economics Prize winner Richard Thaler supported Modi’s demonetisation, but damned it for Rs 2000 notes

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Updated: October 9, 2017 10:51:41 PM

Richard Thaler had supported Prime Minister Narendra Modi's demonetisation decision but damned it for Rs 2000 notes.

Richard Thaler, when Richard Thaler supported demonetisation, Narendra Modi, Richard Thaler on demonetisation, demonetisation, 2000 currency notes, Nobel Prize winner, Nobel Prize winner on demonetisation, Nobel Prize 2017, black money flow, Economics expert, market outcomes, winner of Nobel prizeWhen Modi announced the demonetisation decision on November 8 last year, Thaler described it as a policy I have long supported. (Image: Reuters)

2017 Nobel Economics Prize winner Richard Thaler had supported Prime Minister Narendra Modi’s demonetisation decision, but damned it for Rs 2000 notes. When Modi announced the demonetisation decision on November 8 last year, Thaler described it as a “policy I have long supported” but also remarked “damn” after learning that the government was introducing Rs 2,000 currency notes.

Thaler is a Professor of Economics and Behavorial Science at University of Chicago. He won the Nobel Prize in Economic Sciences on Monday.

In a tweet on November 8, 2016 — along with a link to a news article about demonetisation — Thaler said, “This is a policy I have long supported. First step toward cashless and good start on reducing corruption.”

However, soon after responding to comments that Rs 2,000 currency notes are to be introduced, Thaler tweeted, “really? Damn”.

According to PTI, these tweets came from the Twitter handle ‘@R_Thaler’, which is not officially verified but was tagged by the official feed of the Nobel Prize.

“BREAKING NEWS The 2017 Prize in Economic Sciences is awarded to Richard H Thaler @R_Thaler @UChicago @ChicagoBooth #NobelPrize,” the official twitter feed of the Nobel Prize tweeted today.

Modi had announced demonetisation of old Rs 500 and Rs 1,000 notes as part of efforts to kill black money flow and corruption.

At present, Thaler is the Charles R Walgreen Distinguished Service Professor of Economics and Behavioral Science and Director of the Center for Decision Research, Booth School of Business, University of Chicago.

Announcing the Nobel prize for Thaler, Royal Swedish Academy of Sciences today said he has incorporated psychologically realistic assumptions into analyses of economic decision-making.

“By exploring the consequences of limited rationality, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes,” it said in a release while announcing him as the winner of the Nobel prize.

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