[Epistemic status: Written in 2010. Possibly of historic interest only.]
Goodhart's Law states that "Any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes."
"Control" here means "policy", such as conducted by a government or central bank. To give just one classic example, the Federal Reserve might observe a strong correlation between inflation and unemployment rates which breaks down once the Fed tries to manipulate the inflation rate to reduce unemployment. [1]
The "any" in Goodhart's Law overstates the case -- I regularly use the observed statistical regularity between eating and feeling less hungry for control purposes, and as far as I can tell, this... (read 2576 more words →)
Prior work, in the form of a twitter joke: https://twitter.com/thomascolthurst/status/1032345388605431810