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Gresham's law


 

Gresham's law is stated as: "Bad money drives good money out of circulation".

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Gresham's law applies specifically when there are two forms of commodity money in circulation which are forced, by the application of legal tender laws, to be respected as having the same face value in the marketplace. It is named after Sir Thomas Gresham, an English financier in Tudor times.

Related Topics:
Commodity money - Legal tender - Thomas Gresham - Tudor

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