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No, Greshams law says nothing about things nominally of the same value. It just states that bad money drives out the good money - meaning that for anything tha
by brc 14y ago
No, Greshams law says nothing about things nominally of the same value. It just states that bad money drives out the good money - meaning that for anything that is falling in value, it will be discarded. For anything that is falling slower, or not falling, it will be hoarded.
Currency is definitely something you hoard. It's called savings, and plenty of people still do it.
- jonasvp 14y agohttps://en.wikipedia.org/wiki/Gresham%27s_law https://en.wikipedia.org/wiki/Gresham%27s_law "When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation." Or in other words (from the same article): "Bad money drives out good if their exchange rate is set by law."