Charles Goodhart

Charles Goodhart is a British economist known for his work on monetary policy and financial regulation. He formulated the "Goodhart's Law," which states that once a specific economic indicator becomes a target for policy, it tends to lose its effectiveness as a reliable measure. This is because people and markets adjust their behavior once they know how policymakers are monitoring them, often leading to unintended consequences. His insights highlight the importance of cautious and adaptable policy-making in financial systems to avoid distortions and maintain stability.