Owing to their legal tender status, the operation of Gresham's Law swiftly ensured that greenbacks would displace gold in payments.
Consider this example of how Gresham's law works in practice: for simplicity, say the mint ratio is 2:1, so that 2 ounces of silver has the same monetary significance as 1 ounce of gold.
He seems also to have imagined that a general indiscriminate literacy would be compatible with keeping up something like the proportion that he saw existing between good literature and bad; and here the great and good old man ran hard aground on Gresham's law.
Gresham's law has to do with the nature of currency, and the common formula for it is that "bad money drives out good.
He named it Gresham's law after reading a letter to Queen Elizabeth from Thomas Gresham (1519-79), an English merchant working as the Crown's financial representative in Antwerp.
MacLeod explained the phenomenon that he called Gresham's law on the basis of government intervention in monetary affairs.
Gresham's law takes effect in part because legal penalties against discrimination make it prudent for sellers to treat bad money as the de facto unit of account and for buyers to offer only bad money in exchange [Selgin 1996].
Was the survival of state banknotes after the passage of the national banking acts a manifestation of either Gresham's law or Rolnick and Weber's law?
Bukofzer's choice of adjectives makes his estimation clear: the lute is "dignified" and worthy of serious consideration; the guitar, on the other hand, is "noisy" and "vulgar," an illegitimate usurper functioning as the negative variable in a musicological equivalent of Gresham's law
Colwell and Trefzger cite Gresham's Law
,(7) "Bad money drives out good," or in this case, lemons drive out cream puffs.
In a sort of Gresham's law
of priorities, the low but highly publicized risk has eclipsed the high risks.
Unfortunately, an organization lacking clear, management-led knowledge of its own purposes, beyond continued existence on a kind of organizational autopilot, risks succumbing to the communication equivalent of Gresham's law
Others would dispute that, no doubt, thinking that the accounting selection process shows more evidence of Gresham's law
California Gold, Gresham's Law
, and Indivisible Money
By now a Dark Ages Gresham's Law
has kicked in, and every conservative kvetcher at the mike is pushed out by another one more feverish.