RICHARD THALER, THIS YEAR’S ECONOMICS NOBEL LAUREATE SUPPORTED DEMONETISATION BUT….

Former RBI Governor and renowned economist Raghuram Rajan may not have won this year Nobel Prize in Economic Sciences which went to Prof Richard H Thaler, an economist and a fellow professor from the University of Chicago Booth School of Business, but it is worth mentioning here that Prof Thaler had supported the much discussed demonetisation drive by the Narendra Modi government when it was unveiled on November 8 last year, though with some reservation.

Prof Thaler had then tweeted to express his opinion on the move saying “it was a policy he had long supported.” He further added that it was the first step toward a cashless economy and a good start on reducing corruption.

It is true Prof Thaler was not aware of the nitty-gritty of the Indian economy and was making a generic statement on effects of withdrawing big denomination currency from an economy. When someone questioned him about his observation on India’s demonetisation that simultaneously introduced the Rs 2000 note, his reaction was like ‘how could have happened after such a bold move when he said – really? damn!”

Richard H Thaler‏ @R_Thaler
This is a policy I have long supported. First step toward cashless and good start on reducing corruption.
Richard H Thaler added,
Breaking BusinessVerified account @breakingmoney
Indian PM Modi: 500 and 1000 rupee notes no longer legal tender as of 12 am local time (1:30pm ET) – Time of India http://bit.ly/2eirIId
8:41 PM – 8 Nov 2016

Prof Thaler’s Twitter account is still unverified for it doesn’t carry the routine blue mark but it was tagged by the Nobel Prize committee announcing the Award and it does carry the link to his official profile page on the University of Chicago, Booth School of Business website which proudly features the announcement of Prof Thaler being awarded this year’s Nobel Prize for Economic Sciences.

©SantoshChaubey

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ECONOMICS NOBEL PRIZE WINNER RICHARD THALER PRAISED PM NARENDRA MODI’S NOTE BAN LAST YEAR

The article originally appeared on India Today.

Soon after Prime Minister Narendra Modi told his stunned compatriots last November that two high denomination bills would no longer be legal tender, Richard Thaler, who won the Nobel Prize in Economics today, said it was “a good start on reducing corruption.”

Thaler’s Twitter account isn’t verified. But it does have a link to his page on the website of Chicago’s Booth School of Business.

And when the official announcement of the 2017 Prize in Economic Sciences was made on Twitter, the account @R_Thaler was tagged.

Now, while Richard Thaler appeared to favour the idea of demonetisation, his two-word response to being told that Rs 2,000 notes were being introduced was far less enthusiastic:

“Really? Damn.”

One of Richard Thaler’s colleagues at the Booth School of Business is none other than former RBI chief Raghuram Rajan, who recently indicated that he would have resigned had the demonetisation been thrust upon him.

©SantoshChaubey