Goodhart's law

the proposition that attempts by a CENTRAL BANK to regulate the level of lending by commercial banks through the imposition of controls over certain types of lending can be circumvented by the banks, which find alternative methods of lending that are not subject to regulation.

See MONETARY POLICY, FINANCIAL INNOVATION

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

Mentioned in

buyer
Giffen good
goods
labour theory of value
money
price
Trade Descriptions Acts 1968 and 1972
transaction
transaction costs
two-part tariff
utility
visible export and import

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