gresham's law

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Noun gresham's law has 1 sense

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; bad money drives out good; credited to Sir Thomas Gresham
--₁ is a kind of principle, rule

Definitions from the Web

Gresham's Law

Gresham's Law, named after Sir Thomas Gresham, refers to an economic principle that states "bad money drives out good." In simple terms, it suggests that when two forms of money are in circulation, people tend to spend or use the inferior-quality money, hoarding or keeping the superior-quality money out of circulation. This law is a fundamental concept in monetary economics and has significant implications for currency systems worldwide.

Example Sentences:

Noun:

Gresham's Law explains why the low-quality counterfeit bills have flooded the market.
Inflation can sometimes accelerate the process of Gresham's Law.
Gresham's Law predicts that when both gold and silver coins are used, the one with higher intrinsic value will disappear from circulation.

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