Gresham's law definition

  • noun:
    • the idea holding when two forms of money in blood supply have a similar denominational price but different intrinsic values, the amount of money with higher intrinsic value are going to be hoarded and in the end driven regarding circulation by the cash with less intrinsic value.
    • (business economics) the concept that when two types of money getting the same denominational price come in blood circulation the intrinsically much more important cash are going to be hoarded therefore the money of reduced intrinsic worth will flow more easily before the intrinsically more important money is driven away from circulation; bad money pushes on great; paid to Sir Thomas Gresham

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