Owing to their legal tender status, the operation of Gresham's Law
swiftly ensured that greenbacks would displace gold in payments.
We might posit Sancho's corollary to Gresham's law
: "When a society's bad money forces its good money abroad, it relinquishes moral control over the industries financed by that money."
As this Article has demonstrated, green differentiation is happening in the Kyoto compliance markets--a phenomenon we have characterized as Gresham's Law
Such a system would be immune to Gresham's law
and would not involve the "high cost of exchange" that Selgin imagines, if "shopkeepers in the u.S.
has to do with the nature of currency, and the common formula for it is that "bad money drives out good." That is to say, it is always the worst form of currency in circulation that fixes the value of all the others and causes them presently to disappear.
states that bad money drives out good money.
Thus, the famous British upper-class snobbery combined with Gresham's Law
to help produce an acute shortage of small coins in an economy desperate for them.
The observation that bad money drives out good money, usually called Gresham's law
, has become one of the more famous maxims in economics and has been used to account for many episodes of monetary disorder.
The hazards can be illustrated by applying Gresham's Law
. In economics, this law teaches that bad money drives out good.
It's Sir Thomas Gresham's law
at work: The bad drives out the good.
So much so that my colleague, Ron Baker, created Baker's Law: Bad customers drive out good customers, as a corollary to Gresham's Law
: Bad money drives out good money.
Szasz: 'Having been unwilling to be taught a lesson, Szasz, who has a large readership, deserves to be pilloried.' Kraus is not the only author to whom one might apply Zohn's saddened question, 'Is there a Gresham's Law
of translation by which bad translations drive out the good ones?' (p.