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> worse is better It's a very old idea In the paper, Copernicus postulated the principle that "bad money drives out good", which later came to be referred t
by neonstatic 6mo ago
> worse is better
It's a very old idea
In the paper, Copernicus postulated the principle that "bad money drives out good", which later came to be referred to as Gresham's law after a later describer, Sir Thomas Gresham. This phenomenon had been noted earlier by Nicole Oresme, but Copernicus rediscovered it independently. Gresham's law is still known in Poland and Central and Eastern Europe as the Copernicus-Gresham Law.
https://en.wikipedia.org/wiki/Monetae_cudendae_ratio https://en.wikipedia.org/wiki/Monetae_cudendae_ratio
- edanm 6mo agoI'm not quite sure I understand the connection.
- neonstatic 6mo agoI see one, but then maybe I am just seeing things. The wikipedia page about "worse is better" re: software linked above states: It refers to the argument that software quality does not necessarily increase with functionality: that there is a point where less functionality ("worse") is a preferable option ("better") in terms of practicality and usability. Copernicus' idea about money has a similar structure - "better" money such as precious metals, art, etc. is being hoarded due to its perceived desirability, leading to more "worse" money in circulation. As a result, the "worse" money is actually "better" at fulfilling its role as currency (bc it's not hoarded). So there is also a point where "worse" becomes "better".
- atanasi 6mo agoBad money drives out good money only if there is a legal tender law such that both have to be accepted for the same nominal value. In this case, good money is hoarded because it cannot be traded for its true value.