US Economist who supports demonetisation won Nobel Prize: Outstripping former RBI governor who never favoured Note ban in India
New Delhi, October 10: US Economist Richard Thaler won the Nobel Economics Prize on Monday for his pioneering work bridging the gap between economics and psychology. When Modi government had announced demonetization in last November, the Nobel laureate had openly supported it.
On 8 November 2016, Thaler tweeted along with a news article link on demonetization, “This is a policy I have long supported.” He added, “First step toward cashless and good start on reducing corruption.”
This is a policy I have long supported. First step toward cashless and good start on reducing corruption. https://t.co/KFBLIJSrLr
— Richard H Thaler (@R_Thaler) November 8, 2016
Soon after getting to know about introducing Rs 2000 currency notes, Thaler tweeted, “really? Damn”.
Thaler is a Professor of Economics and Behavioural Science and Director of the Center for Decision Research, Booth School of Business, at the University of Chicago. He won the Nobel Prize yesterday in Economic Sciences.
Raghuram Rajan, former RBI governor, is currently serving as the Distinguished Service Professor of Finance at the University of Chicago Booth School. Rajan’s name was also doing the rounds for the Nobel Prize. Recently, he stated that he was never in favor of demonetization.
Indian Prime Minister Narendra Modi, on November 8, had announced demonetisation of old Rs 500 and Rs 1000 notes as part of the efforts to curb illicit fund flows and corruption.
Thaler, according to Royal Swedish Academy of Sciences, has incorporated psychologically realistic assumptions into analyses of economic decision-making.
While announcing Thaler as the winner of Nobel prize, Royal Swedish Academy of Sciences said, “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.”