Gresham's Law

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  • noun

Words related to Gresham's Law

(economics) the principle that when two kinds of money having the same denominational value are in circulation the intrinsically more valuable money will be hoarded and the money of lower intrinsic value will circulate more freely until the intrinsically more valuable money is driven out of circulation

References in periodicals archive ?
Associations of Gresham's law are more appropriate for the story I will tell about Turkey.
By the early 1850s, Gresham's Law was in action again, owing to the California gold bonanza.
Gresham's law in the context of a tyrant (Philip III) contaminating the money supply with copper: good money leaves and bad money comes in to replace it.
Irrespective of Gresham's Law, the Second Law of Thermodynamics, that "heat can't pass from a cooler to a hotter," has prevailed.
Such a system would be immune to Gresham's law and would not involve the "high cost of exchange" that Selgin imagines, if "shopkeepers in the u.
Gresham's law has to do with the nature of currency, and the common formula for it is that "bad money drives out good.
Gresham's Law states that bad money drives out good money.
Thus, the famous British upper-class snobbery combined with Gresham's Law to help produce an acute shortage of small coins in an economy desperate for them.
A variant of Gresham's law applies: just as bad money drives out good, less desirable businesses keep more desirable businesses away.
It is quite possible that increased reader interaction and vastly diminished control over creation of content will require increased vigilance to ensure the marketplace of ideas is not subjected to Gresham's Law ("Bad money drives out good money"), and that editorial pages will position themselves to take advantage of pillar of free speech defenses; i.
This Economic Commentary examines the history and the economic foundations of Gresham's law and identifies two explanations for the law.
It's Sir Thomas Gresham's law at work: The bad drives out the good.
Kraus is not the only author to whom one might apply Zohn's saddened question, 'Is there a Gresham's Law of translation by which bad translations drive out the good ones?
Gresham's law asserts that "bad money drives good money out of circulation.