Gresham's law
Sign in to saveAlso known as bad money drives out good, bad money
monetary principle on circulating currency; "bad money drives out good"
Wikidata facts
- Named after
- Thomas Gresham
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- Commons category
- Gresham's law
- described by source
- Encyclopædia Britannica 11th edition
Sources (1)
via Wikidata · CC0
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Encyclopedic overview
Sir Thomas Gresham
In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two coins in circulation containing metal of different value, which are accepted by law as having similar face value, the more valuable coin based on the inherent value of its component metals will gradually disappear from circulation.
Excerpted from Wikipedia’s “Gresham's law” article, available under the CC BY-SA 4.0 licence.