Gresham's Law

Discipline: Economics

Usually attributed to English businessman Sir THOMAS GRESHAM (1519-1579), Gresham's Law is often summarized as 'Bad money drives out good.'

Gresham's observation concerned the likelihood that coins with bullion content equal or higher than their face value would be removed from circulation and melted down, leaving in circulation only coins with a metal value lower than their face value.

The law has little useful application today.

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