NOUN
- (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
How To Use Gresham's Law In A Sentence
- In a situation where people can opt for two currencies, according to Gresham's Law, bad money forces good money out of circulation.
- A final and vital flaw in a market-basket dollar is that Gresham's law would result in perpetual shortages and surpluses of different commodities within the market basket.
- If this is not done, Gresham's law may well prevail: bad graphs will drive out the good.
