A few days after the first anniversary of demonetisation, Economist and Nobel laureate Richard Thaler mentioned that the execution of the note ban was 'deeply flawed'. Thaler, who received the Nobel Prize for his contribution to behavioural economics, wrote this to a student who had mailed him about his views on demonetisation. He further added in his reply that the concept was good move to curb corruption but the introduction of the Rs 2000 note makes the motive for the entire exercise puzzling.
The mail was written by Swaraj Kumar, one of Thaler's students. The screenshots of the exchange were posted by Rupa Subramanya and was later retweeted by Thaler himself.
However, not long after the note ban was announced, Richard Thaler had lauded the move and said that it's a policy he has 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
Demonetisation sucked out 86 per cent of the currency in circulation. According to reports, government's note printing presses had to work overtime to print sufficient Rs 2000 notes to meet the demand.
The recent economic slowdown has also been attributed to demonetisation.
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