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Goodhart's law, coined by the British economist Charles Goodhart: when a measure becomes a target it ceases to be a good measure.
Vincent Deary • How We Break
Goodhart's law is an adage often stated as, "When a measure becomes a target, it ceases to be a good measure".[1] It is named after British economist Charles Goodhart, who is credited with expressing the core idea of the adage in a 1975 article on monetary policy in the United Kingdom:[2] Any observed statistical regularity will tend to collapse
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Geoff Bertramrnz.co.nz
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Charles Goodhart • Goodhart's law
In the words of Bill Gross, who runs the world’s largest bond fund at the Pacific Investment Management Company (PIMCO), ‘bond markets have power because they’re the fundamental base for all markets. The cost of credit, the interest rate [on a benchmark bond], ultimately determines the value of stocks, homes, all asset classes.’
Niall Ferguson • The Ascent of Money: A Financial History of the World: 10th Anniversary Edition
Named after the economist Charles Goodhart, the principle states, “When a measure becomes a target, it ceases to be a good measure.” Measurement is only useful when it guides you and adds context to a larger picture, not when it consumes you. Each number is simply one piece of feedback in the overall system.
James Clear • Atomic Habits
A related doctrine known as Goodhart’s law, after the London School of Economics professor who proposed it,38 holds that once policy makers begin to target a particular variable, it may begin to lose its value as an economic indicator. For instance, if the government artificially takes steps to inflate housing prices, they might…
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