Did Richard H Thaler, winner of 2017’s Nobel Prize for economics really endorse Modi’s demonetisation move?

BJP leaders are sharing a Richard Thaler's tweet on demonetisation. But did the Nobel Prize winner for ecoomics really support demonetisation?

By: News Desk |
October 10, 2017 2:42 pm

American economist Richard Thaler was awarded 2017 Nobel prize in economics “for his contributions to behavioural economics”. While a number of people on social media congratulated him for winning the Nobel Prize, some members of the Bharatiya Janata Party (BJP) pointed out that Thaler had extended his support to the central government’s demonetisation move.

Back in November 2016, when Prime Minister Narendra Modi announced his decision to do away with Rs 500 and Rs 1000 notes, Thaler praised the move saying that it was a “policy” he had “long supported”.

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

BJP supporters, including the Union Minister, went all out to share Thaler’s tweet on demonetisation asserting that the move which was heavily criticised by the members of the opposition was supported by a Nobel Prize for economics winner.

Richard Thaler just won the Nobel for Economics.. pic.twitter.com/oUvSGO0dbX

— Amit Malviya (@malviyamit) October 9, 2017

Dear so called great economists of congress …….lets meet Nobel prize winner in economics pic.twitter.com/Ko78holnqf

— Giriraj Singh (@girirajsinghbjp) October 9, 2017

Prof Thaler of UChicago, Nobel prize winner in Economics!! pic.twitter.com/yA8pkLhyTc

— Arvind Gupta (@buzzindelhi) October 9, 2017

Meanwhile, some of the social media users shared the second tweet by Thaler on demonetisation where he expressed shock over the news of doing away with Rs 500 and Rs 1000 currency notes by introducing Rs 2000 notes.

Here’s the second tweet by Thaler’s:

On November 8, PM Modi declared that the government was banning Rs 500 and Rs 1000 notes in a bid to promote cashless economy and control corruption. The move was welcomed by a few while a number of people from the Congress party blamed the Prime Minister for the economic slowdown. However, BJP’s performance at the election remained unaffected and BJP eventually won the elections.

Richard Thaler works as a professor of Behavioral Science and Economics at the University of Chicago. Former Reserve Bank of India governor Raghuram Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business.