Good Money

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August 31, 2024 5 min read Definitions

Bad Money Drives Out Good: Understanding Gresham's Law

Economics Finance Gresham's Law Bad Money Good Money Economic Principles Monetary Policy

An in-depth examination of the economic principle known as Gresham's Law, which asserts that 'bad money drives out good money' under certain conditions.

August 31, 2024 4 min read Definitions

Gresham's Law: The Observation that 'Bad Money Drives Out Good'

Economics Finance Gresham's Law Bad Money Good Money Debasement Fiat Currency

Gresham's Law is the observation that 'bad money drives out good', based on the idea that consumers prefer to spend debased currency and hoard valuable currency. This concept is still relevant in the age of fiat money.