charles goodhart


  • His career can be divided into two sections: his term with the Bank of England and its associated public policy; and his academic work with the London School of Economics.

  • Charles wrote this law in the footnotes of his paper Problems of monetary management: the UK experience[7] for the Reserve Bank of Australia during his time at the Bank of
    England (1975).

  • [1] During this time, he contributed to a study on English monetary policy Monetary Policy in Twelve Industrial Countries [4] which was commissioned by the federal Reserve
    Bank of Boston.

  • [1][2] In June 1962, following the completion of his PhD thesis, which analysed United States monetary history (specifically why the economy rebounded in 1907 but not in 1929),
    Charles and his new wife travelled back to Cambridge.

  • [1] Career Bank of England (1968–1985)[edit] Charles left the London School of Economics to work a temporary two-year assignment at the Bank of England.

  • [1] He spent the next two years interpreting English monetary history by cumulating and analysing the monthly reports of the London Joint Stock Banks, which were published
    after the Barings crisis of 1890.

  • [14] At the 2021 Central Banking Awards, Goodhart was awarded the Central Banking Lifetime Achievement Award for his work on monetary frameworks, risk management and foreign
    exchange markets as well as his involvement in the Hong Kong peg, the independence of the Royal Bank of New Zealand and the creation of Goodhart’s Law.

  • [2] List of prominent published works: 1988, The Evolution of Central Banks; 1989, Money, Information and Uncertainty; 1995, The Central Bank and The Financial System; 2001,
    Regulating Financial Services and Markets in the 21st Century; 2001, What Weight Should Be Given to Asset Prices in the Measurement of Inflation?

  • (2021) Whilst attending a conference held by the Reserve Bank of Australia in 1975, Goodhart wrote in his footnotes “whenever a government seeks to rely on a previously observed
    statistical regularity for control purposes, that regularity will collapse”.

  • [1] His first job at the Bank of England was to explain the concept of domestic credit expansion to individuals within the Bank, whilst conveying the Bank’s viewpoints on
    such issues to outside economists.

  • [17] In an article included as part of the South African Reserve Bank Conference,[17] Goodhart assessed the actions taken to provide global financial stability and concluded:
    “proposed reforms are incomplete and/or partially misdirected”.

  • [14] From late 1997 until May 2000, he was a member of the Bank of England Monetary Policy Committee.

  • [1][2] He was allocated to the Economic Intelligence Department which was responsible for calculating and simulating economic statistics as well as writing the Bank of England’s
    Quarterly Bulletin.

  • [6] During this time Goodhart served as the first secretary of the Monetary Review Committee, who provided summarised views of monetary developments to the Chancellor and
    Treasury of England.

  • [18] Throughout his career, Goodhart played a role in improving the practice of financial regulation and central banking by making it easier for governments and central bankers
    to benefit public welfare by dampening economic cycles.

  • [1] London School of Economics (1986–2002)[edit] Following Goodhart’s departure from the Bank of England, he re-joined the London School of Economics as the Norman Sosnow
    Professor of Banking and Finance.

  • [1] During this time, he worked on White Papers, planning the growth of the energy, construction and housing sectors in England.

  • [1] Following the events of Black Saturday (1983), Goodhart travelled to Hong Kong to assist in implementing a currency board system that was linked to the United States dollar.

  • [1] Goodhart left the Department of Economic Affairs in 1966 when he joined the London School of Economics as a lecturer on monetary policy.

  • [2] His most cited works include Money, Information and Uncertainty and The Evolution of Central Banks.

  • [11] His results from his work were published in his book: ‘The Foreign Exchange Market: Empirical Studies With High-Frequency Data’.

  • [3] In reflection to the creation of Goodhart’s Law, Charles wrote: “it does feel slightly odd to have one’s public reputation largely based on a minor footnote”.

  • [11] He then collaborated with Swiss firm Olsen and Associates to lead conferences about the importance of high speed data analysis and collection.

  • [15] Four years prior to the Global Financial Crisis, Goodhart identified how the global economy was financially unstable in his Per Jacobsson lecture ‘Some New Directions
    for Financial Stability?’.

  • [1] In 1970, he was tasked with empirically assessing the predictability of the demand for money, and had the results published in the Bank of England’s Quarterly Bulletin
    in a paper called ‘The Importance of Money’.


Works Cited

[‘1. Goodhart, Charles (1997). “Whither Now?”. Banca Nazionale del Lavoro Quarterly Review. 50: 385–430 – via Banca Nazionale del Lavoro.
2. ^ Jump up to:a b c d e f g h i j k l m n o Kohn, Donald; Cord, Robert (2019). “Charles Goodhart (1936–).”.
The Palgrave Companion to LSE Economics. London: Palgrave Macmillan. pp. 765–789. ISBN 9781137582744.
3. ^ Jump up to:a b c Strathern, Marilyn (1997). “‘Improving ratings’: audit in the British University system”. European Review. 5 (3): 305–321.
4. ^ Grant, A. T. K. (1 June 1974). “Karel Holbik. Monetary Policy in Twelve Industrial Countries”. The Economic Journal. 84 (334): 420–421. doi:10.2307/2231281. ISSN 0013-0133.
5. ^ Goodhart, C. A. E.; Bhansali, R. J. (1970). “Political
Economy”. Political Studies. 18: 43–106 – via Sage Journals.
6. ^ Goodhart, C. A. E (1970). Crockett, A. D. (ed.). “The importance of money”. Bank of England Quarterly Bulletin. Q2: 159–198.
7. ^ Jump up to:a b c Goodhart, C. A. E. (1975).
“Problems of Monetary Management: The U.K. Experience”. Papers in Monetary Economics. Sydney: Reserve Bank of Australia. 1.
8. ^ Foot, M. D. K. W; Goodhart, C. A. E.; Hotson, A. C. (1 June 1979). “Monetary base control”. Bank of England Quarterly
Bulletin. Vol. 19, no. 2. pp. 148–159.
9. ^ Goodhart, C. A. E. (November 1988). “The foreign exchange market: a random walk with a dragging anchor”. Economica. 55 (220): 437–460. JSTOR 2553908.
10. ^ Kohn, Donald (2019). “Charles Goodhart
(1936–)”. The Palgrave Companion to LSE Economics. London: Palgrave Macmillan. pp. 765–789. ISBN 978-1-137-58274-4.
11. ^ Jump up to:a b c d e Jeffery, Christopher; Hinge, Daniel; Harde, Dan; King, Racheal; Mendez-Barreira, Victor; Towning,
William; Shen, Alice (17 March 2021). “Lifetime achievement: Charles Goodhart”. Central Banking. Retrieved 20 May 2022.
12. ^ Goodhart, C. A. E; Payne, R (2000). The Foreign Exchange Market: Empirical Studies with High-Frequency Data. Palgrave
Macmillan. ISBN 978-0333630839.
13. ^ Reserve Bank of New Zealand; The Parliamentary Counsel Office. “Reserve Bank of New Zealand Act 1989”. New Zealand Legislation.
14. ^ Jump up to:a b c d e “Charles Goodhart Biography | Santander International
Banking Conference”. Retrieved 27 May 2022.
15. ^ The Monetary Policy Committee of the Bank of England: ten years on (PDF). House of Commons Treasury (Report). Vol. 1. 18 September 2007. HC 299–I.
16. ^ Goodhart, C.A.E.
(2004). ‘Some New Directions for Financial Stability?’. Per Jacobsson Lecture. FMG Special Papers sp158, Financial Markets Group.
17. ^ Jump up to:a b c Goodhart, C.A.E. (2011b). ‘The Emerging New Architecture of Financial Regulation’. Chapter
1 in Monetary Policy and Financial Stability in the Post-crisis Era. South African Reserve Bank Conference Series 2010, South African Reserve Bank 90th Anniversary. Pretoria: South African Reserve Bank: 1–5
18. ^ Goodhart, C.A.E. (2013). ‘Narratives
of the Great Financial Crisis (GFC): Why I Am Out of Step’. Journal of Financial Perspectives, 1(3): 13–19.
19. ^ Jump up to:a b c “Charles Goodhart”. The MIT Press. 2022. Retrieved 20 May 2022.
20. ^ Goodhart, C. A. E (1988). Evolution of
Central Banks. The MIT Press. ISBN 9780262570732.
21. ^ Goodhart, C. A. E (1989). Money, Information and Uncertainty. The MIT Press. ISBN 978-0262570756.
22. ^ Goodhart, C. A. E. (1995). The Central Bank and The Financial System. Palgrave
Macmillan London. ISBN 978-0-230-37915-2.
23. ^ Goodhart, C. A. E (2001). Regulating Financial Services and Markets in the 21st Century. Hart Publishing.
24. ^ Goodhart, C. A. E. (June 2001). “What Weight Should be Given to Asset Prices in
the Measurement of Inflation?”. The Economic Journal. 111 (472): 335–356. JSTOR 2667880.
25. ^ Goodhart, C. A. E. (December 2008). “The regulatory response to the financial crisis”. Journal of Financial Stability. 4 (4): 351–358. doi:10.1016/j.jfs.2008.09.005.
26. ^
Brunnermeier, Markus; Crocket, Andrew; Goodhart, Charles; Hellwig, Martin; Persaud, Avinash; Shin, Hyun (2009). The Fundamental Principles of Financial Regulation: Geneva Report on the World Economy 11 (PDF). Geneva Report.
27. ^ Goodhart C.
IS A LESS PRO-CYCLICAL FINANCIAL SYSTEM AN ACHIEVABLE GOAL? National Institute Economic Review. 2010;211(1):81-90. doi:10.1177/0027950110364100
28. ^ The Great Demographic Reversal. doi:10.1007/978-3-030-42657-6.
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