question archive Which of the following laws suggests that attempts by a central bank to regulate the level of lending by banks imposing certain controls can be circumvented by the banks searching alternatives out of the regulatory preview'? a) Flag of Convenience Law, b) Swiss Syndrome Law, c) Goodhart's Law, d) Okun's Law
Which of the following laws suggests that attempts by a central bank to regulate the level of lending by banks imposing certain controls can be circumvented by the banks searching alternatives out of the regulatory preview'? a) Flag of Convenience Law, b) Swiss Syndrome Law, c) Goodhart's Law, d) Okun's Law
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Which of the following laws suggests that attempts by a central bank to regulate the level of lending by banks imposing certain controls can be circumvented by the banks searching alternatives out of the regulatory preview'?
a) Flag of Convenience Law,
b) Swiss Syndrome Law,
c) Goodhart's Law,
d) Okun's Law.
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Option c) Goodhart's Law is correct.
The Goodhart's law is a law devised by a previous advisor of the Bank of England, Charles Goodhart and it explains that information is lost in the procedure of targeting a socio-economic policy when a socio-economic indicator is made a basis for it.
