Abstract
According to Goodhart's Law, tightening monetary control loosens the relationship between money and what the monetary authorities care about. Therefore, tightening monetary control can actually destabilize output if Goodhart's Law holds and the money-output relationship loosens enough. This paper presents evidence that Goodhart's Law has held in the United States during the postwar period. Although tighter monetary control has apparently loosened the money-output relationship, it has also on net tended to stabilize output.

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