Nobel Prize winner for Economics Richard Thaler supported demonetisation as policy for long

New Delhi: When India announced demonetisation last November, Nobel Prize winner Richard Thaler described it as a “policy I have long supported” but also remarked “damn” when it was brought to his notice that the government was introducing Rs 2,000 currency notes. Thaler, a Professor of Economics and Behavorial Science at the University of Chicago, on Monday won the Nobel Prize in Economic Sciences. [caption id=“attachment_4124703” align=“alignleft” width=“380”] File image of Richard Thaler. AP[/caption] Former RBI governor Raghuram Rajan is currently serving as Distinguished Service Professor of Finance, University of Chicago Booth School. Rajan, whose name was also doing the rounds for the Nobel Prize, recently stated that he was never in favour of demonetisation. In a tweet on 8 November, 2016 — along with a link to a news article about demonetisation — Thaler said, “This is a policy I have long supported. The first step toward cashless and good start on reducing corruption.” Soon after responding to comments that Rs 2,000 currency notes are to be introduced, Thaler tweeted, “really? Damn”. 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 on Monday. On 8 November, Prime Minister Narendra Modi had announced demonetisation of old Rs 500 and Rs 1,000 notes as part of efforts to curb illicit fund flows and corruption. 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. The Royal Swedish Academy of Sciences on Monday said Thaler 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.