Gresham's law

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Gresh·am's law

The theory holding that if two kinds of money in circulation have the same denominational value but different intrinsic values, the money with higher intrinsic value will be hoarded and eventually driven out of circulation by the money with lesser intrinsic value.

[After Sir Thomas Gresham.]
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Gresham's law


Gresham's theorem

(Economics) the economic hypothesis that bad money drives good money out of circulation; the superior currency will tend to be hoarded and the inferior will thus dominate the circulation
[C16: named after Sir Thomas Gresham]
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

Gresh′am's law′

the tendency of an inferior currency to drive a superior currency out of circulation because of the hoarding of the latter.
[1855–60; after Sir T. Gresham]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.Gresham's Law - (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
principle, rule - a rule or law concerning a natural phenomenon or the function of a complex system; "the principle of the conservation of mass"; "the principle of jet propulsion"; "the right-hand rule for inductive fields"
economic science, economics, political economy - the branch of social science that deals with the production and distribution and consumption of goods and services and their management
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
Among the articles in this volume are Germania illustrata, gold standard, Gresham's Law, hair, harbor crane, global health culture, hero and heroine, history of philosophy, Holy Roman Empire (of the German Nation), humanism, hydraulic engineers, and imperial constitution.
Thus, what we see today on the internet is a kind of Gresham's law writ global as bad ideas and fake news drive away the good, reliable ones via e-mail, Facebook, Twitter, Instagram, and search engines like Google.
Gresham's Law, based on the 18th Century observation that debased currency drives out the good, is now evident in the realm of information, with fake news crowding out real news.
Subramanyan said that the Gresham's law in economics, which says that bad money drives good money out of circulation, is also applicable in the bilateral economic engagement in the sense that progress in bilateral economic relations at times get smarred by certain challenges.
In the subsequent decade, gold soared from $35 to above $800 an ounce, a perfect vindication of Gresham's law - bad money drives out good.
The fact that the coin:silver exchange rate was only nominally fixed renders inapplicable "Gresham's law" as usually quoted, because the converse is true (good money expels bad) "under a floating exchange rate" (p.
The phrase "bad money drives out good," known as Gresham's law, served as one of the fundamental principles of economy for some time.
What we need now is a primer on the major misconceptions in the hope that, unlike Gresham's Law, which says that bad money drives out good money, good economics will drive out bad economics.
As is always the case with a legally fixed bimetallic monetary standard, the operation of Gresham's Law (5) ensured that, as soon as the current market price ratio of silver to gold deviated significantly from the legally fixed mint ratio, one metal would "chase" the other out of circulation.
Perhaps most astounding, however, Sancho's phrase appears to reference what in the field of economics has come to be known as Gresham's law. Gresham's law states that when an exchange rate is compulsory, bad (overvalued) money replaces good (undervalued) money, a phenomenon that early modern economists like Oresme and Mariana perceived in the tendency of precious metals to get hoarded away or else exported out of a country in which their market value was repressed by laws artificially sustaining a debased currency.
Indeed, contrary to Gresham's Law, it seems quite likely that the premium "green" currencies currently emerging in the Kyoto compliance markets will lead to tighter rules ,and higher compliance standards for future carbon markets at international, regional, and national levels.
I have mused also whether a Gresham's Law operates in culture, viz., that "bad culture drives out good culture." What I see is that with connection to the World, people become more diffident in enjoying their local pleasures, and much less willing to share pleasures with their neighbors.