Nobel Prize-winning economist says he's nervous about stock market

Nobel Prize-winning economist says he's nervous about stock market

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". Thaler's theory was one valuable addition to the field of behavioural economics.

In 2001, Thaler along with Shlomo Benartzi of the UCLA Anderson School of Management, addressed the issue of using behavioral economics to increase employee saving.

"This has also been used in public pension systems in the United States and the general idea of "nudging". has made a breakthrough in public policy making", Torsten Persson, economics prize committee member, told Reuters.

Thaler will receive a 9 million kroner ($1.1 million) cash prize for his work. The Royal Swedish Academy of Sciences noted that Thaler, in his applied work, demonstrated how nudging may help people exercise better self-control when saving for retirement, as well as in other contexts. "I hope that in five years, ten years, we will see a very different distribution", Hansson said.

"We are concerned, we are taking measures".

Much before USA economist Richard Thaler won Nobel prize for economics, the Narendra Modi government had put his famous theory in practice by dedicating a separate unit to it. Thaler popularised the idea of "nudge economics", which emphasises subtly guiding humans toward beneficial behaviours without forcing them to comply. Thaler's experimental work revealed people often make irrational economic choices, Kochov said.

The Swedish National Bank Prize in Economic Sciences in Memory of Alfred Nobel was first granted to its first recipients, Ragnar Frisch of Norway and Jan Tinbergen of the Netherlands, nearly 70 years after the series of prestigious prizes that Nobel helped establish through funding set aside in his will.