Premium
The ECB and the Conduct of Monetary Policy: Goodhart's Law and Lessons from the Euro Area
Author(s) -
GOODHART C.A.E.
Publication year - 2006
Publication title -
jcms: journal of common market studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.54
H-Index - 90
eISSN - 1468-5965
pISSN - 0021-9886
DOI - 10.1111/j.1468-5965.2006.00661.x
Subject(s) - monetary policy , inflation (cosmology) , economics , keynesian economics , monetary economics , macroeconomics , physics , theoretical physics
Goodhart's Law states that ‘any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes’. This article explores whether the inflation experience in EMU and the critique of the monetary policy strategy of the ECB can be understood in the light of this law.