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Charles Goodhart (1936–)

  • Donald KohnEmail author
Chapter

Abstract

Charles Goodhart has made major contributions to the study of financial markets and macroeconomics, pioneering the integration of those two disciplines and applying his insights to the structure and practice of central banking. Goodhart served at the Bank of England in the 1970s and 1980s and as a policy maker on the Monetary Policy Committee (MPC). Along with Mervyn King, he founded and led the Financial Markets Group (FMG) at LSE, which has helped to ground the study of financial markets in actual practice. He foresaw many of the issues that led to the 2008 global financial crisis (GFC), has made a number of suggestions for preventing a repeat and has commented extensively on the strengths and weaknesses of the regulatory and monetary policy responses to that crisis.

Keywords

Charles Goodhart Central banking Global financial crisis Financial stability Goodhart’s Law Monetary policy 

References

Main Works by Charles Goodhart

  1. Avgouleas, E. and C.A.E. Goodhart (2015). ‘Critical Reflections on Bank Bail-Ins’. Journal of Financial Regulation, 1(1): 3–29.CrossRefGoogle Scholar
  2. Brunnermeier M., A.D. Crockett, C.A.E. Goodhart, A.D. Persaud and H.S. Shin (2009). The Fundamental Principles of Financial Regulation. Geneva Reports on the World Economy 11. Geneva: International Center for Monetary and Banking Studies (ICMB) and London: Centre for Economic Policy Research (CEPR).Google Scholar
  3. Goodhart, C.A.E. (1962). ‘National Banking System Reactions to Seasonal Variations, 1900–1913’. Two volumes. PhD thesis, Harvard University.Google Scholar
  4. Goodhart, C.A.E. (1972). The Business of Banking, 1891–1914. London: Weidenfeld & Nicolson.Google Scholar
  5. Goodhart, C.A.E. (1984). ‘Problems of Monetary Management: The UK Experience’. Chapter III in C.A.E. Goodhart Monetary Theory and Practice. London: Macmillan: 91–121.CrossRefGoogle Scholar
  6. Goodhart, C.A.E. (1987). ‘The Foreign Exchange Market: A Random Walk with a Dragging Anchor’. FMG Discussion Paper 1. London: FMG.Google Scholar
  7. Goodhart, C.A.E. (1988). The Evolution of Central Banks. Cambridge, MA: MIT Press.Google Scholar
  8. Goodhart, C.A.E. (1989). Money, Information and Uncertainty. Second edition. Houndmills, Basingstoke, Hampshire: Macmillan.CrossRefGoogle Scholar
  9. Goodhart, C.A.E. (1997). ‘Whither Now?’. BNL Quarterly Review, 50(203): 385–430.Google Scholar
  10. Goodhart, C.A.E. (1998). ‘The Two Concepts of Money: Implications for the Analysis of Optimal Currency Areas’. European Journal of Political Economy, 14(3): 407–432.CrossRefGoogle Scholar
  11. Goodhart, C.A.E. (2004). ‘Some New Directions for Financial Stability?’. Per Jacobsson Lecture. Available at: http://www.bis.org/events/agm2004/sp040627.pdf.
  12. Goodhart, C.A.E. (2010). ‘How Should we Regulate Bank Capital and Financial Products? What Role for “Living Wills”?’. Chapter 5 in The Future of Finance and the Theory that Underpins It. London: LSE: 165–186.Google Scholar
  13. Goodhart, C.A.E. (2011a). ‘The Squam Lake Report: Commentary’. Journal of Economic Literature, 49(1): 114–119.CrossRefGoogle Scholar
  14. 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: 1–54.Google Scholar
  15. Goodhart, C.A.E. (2011c). ‘The Changing Role of Central Banks’. Financial History Review, 18(2): 135–154.CrossRefGoogle Scholar
  16. 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.Google Scholar
  17. Goodhart, C.A.E. (2015). ‘Why Monetary Policy Has Been Comparatively Ineffective?’. The Manchester School, 83(S1): 20–29.CrossRefGoogle Scholar
  18. Goodhart, C.A.E. and J.P. Ashworth (2012). ‘QE: A Successful Start May Be Running into Diminishing Returns’. Oxford Review of Economic Policy, 28(4): 640–670.CrossRefGoogle Scholar
  19. Goodhart, C.A.E. and A.D. Crockett (1970). ‘The Importance of Money’. Bank of England Quarterly Bulletin, 10(2): 159–198. Reprinted as Chapter I in C.A.E. Goodhart (1984) Monetary Theory and Practice. London: Macmillan: 21–66.Google Scholar
  20. Goodhart, C.A.E. and M.A. Jensen (2015). ‘A Commentary on Patrizio Laina’s “Proposals for Full-Reserve Banking: A Historical Survey from David Ricardo to Martin Wolf”’. Economic Thought, 4(2): 20–31.Google Scholar
  21. Goodhart, C.A.E., P. Sunirand and D. Tsomocos (2004). ‘A Model to Analyse Financial Fragility: Applications’. Journal of Financial Stability, 1(1): 1–30. Reprinted as Chapter 6 in J. Toporowski (ed.) (2010) Financial Markets and Financial Fragility. Northampton, Mass.: Edward Elgar: 138–167.Google Scholar
  22. Goodhart, C.A.E., P. Sunirand and D. Tsomocos (2011). ‘The Optimal Monetary Instrument for Prudential Purposes’. Journal of Financial Stability, 7(2): 70–77.CrossRefGoogle Scholar
  23. Goodhart, C.A.E. and D. Tsomocos (2012). The Challenge of Financial Stability: A New Model and Its Applications. Cheltenham, UK: Edward Elgar.Google Scholar
  24. Goodhart, C.A.E., D. Tsomocos and M. Shubik (2013). ‘Macro-Modelling, Default and Money’. FMG Special Paper 224. London: FMG.Google Scholar
  25. Goodhart, C.A.E., D. Tsomocos and A.P. Vardoulakis (2010). ‘Modeling a Housing and Mortgage Crisis’. In R.A. Alfaro (ed.) Financial Stability, Monetary Policy, and Central Banking. Santiago, Chile: Central Bank of Chile: 215–253.Google Scholar
  26. Kashyap, A.K., R. Berner and C.A.E. Goodhart (2011). ‘The Macroprudential Toolkit’. IMF Economic Review, 59(2): 145–161.CrossRefGoogle Scholar

Other Works Referred To

  1. Chrystal, K.A. and P.D. Mizen (2003). ‘Goodhart’s Law: Its Origins, Meaning and Implications for Monetary Policy’. Chapter 8 in P. Mizen (ed.) Central Banking, Monetary Theory and Practice: Essays in Honour of Charles Goodhart. Volume 1. Cheltenham, UK: Edward Elgar: 221–243.Google Scholar
  2. Goodhart, W. (2010). ‘A.L. Goodhart’. LSE Legal Studies Working Paper No. 1/2010. London: LSE.Google Scholar
  3. Lucas, R.E., Jr. (1976). ‘Econometric Policy Evaluation: A Critique’. In K. Brunner and A.H. Meltzer (eds) The Phillips Curve and Labor Markets. Carnegie-Rochester Conference Series on Public Policy. Amsterdam: North-Holland Publishing Company: 19–46.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  1. 1.Economic Studies programme at the Brookings InstitutionWashingtonUSA

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