Richard Thaler wins Nobel for work in behavioral economics

Ann Santiago
October 11, 2017

Richard Thaler was awarded over the weekend the 2017 Nobel Memorial Prize in Economic Sciences for his "contributions to behavior economics", Business Insider reported. The Nobel committee said Thaler has provided a "more realistic analysis of how people think and behave when making economic decisions".

The 72-year-old takes home a nine million kronor (944,000 euros, $1.1 million) prize sum. Members of BJP 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 victor.

"There's also a nudging unit for the United Kingdom government, there's one for the Australian government, it even affects the Swedish government when they think about these things"'.

Thaler made a cameo appearance in the 2015 movie "The Big Short" about the credit and housing bubble collapse that led to the 2008 global financial crisis.

"I don't know about you, but I'm nervous, and it seems like when investors are nervous, they're prone to being spooked", Mr. Thaler said, "Nothing seems to spook the market" and if the gains are based on tax-reform expectations, "surely investors should have lost confidence that that was going to happen". 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. "I no longer will have to call my colleague Eugene Fama "Professor Fama" on the golf course", he joked, referring to his University of Chicago colleague who won the 2013 Nobel Economics Prize.

The concept has now expanded to the United States and even Australia.

The Royal Swedish Academy of Sciences announced the Nobel Prize 2017 award Monday.

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