Home > Term: Gresham's law
Gresham's law
Bad money drives out good. One of the oldest laws in economics, named after Sir Thomas Gresham, an adviser to Queen Elizabeth I of England. He observed that when a currency has been debased and a new one is introduced to replace it, the new one will be hoarded and effectively taken out of circulation, while the old one will continue to be used for transactions, to be got rid of as fast as possible.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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