Goodhart's law

Originally, an economic theory stating that if a particular definition of the money supply were to be used as the basis for monetary policy, the stability of its statistical relationship with spending on the economy would break down and the policy would prove ineffective. The law is now used more widely to highlight the problems of focusing on the value of any specific variable as an indicator. In simple terms, when a measure becomes a target, it ceases to be a good measure. The applications to performance measurement in management accounting and other aspects of business are obvious.

Big dictionary of business and management. 2014.

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  • Goodhart, Arthur Lehman — (1891–1978)    US jurist. A nephew of Governor Herbert Lehman, Goodhart achieved high academic distinction at Oxford University, where he was professor of jurisprudence and master of University College the first American and the first Jew to head …   Who’s Who in Jewish History after the period of the Old Testament

  • Arthur Lehman Goodhart — Arthur Lehman Goodhart, KBE, KC (1 March 1891, New York City – 10 November 1978, Oxford) was an American born British academic jurist and lawyer; he was professor of jurisprudence, University of Oxford, 1931–51. He was the first American to be… …   Wikipedia

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