theory in economics that bad money drives out good money. Specifically, people faced with a choice of two currencies of the same nominal value, one of which is preferable to the other because of metal content, will hoard the good money and spend the bad money, thereby driving the good money out of circulation.
theory in economics that bad money drives out good money. Specifically, people faced with a choice of two currencies of the same nominal value, one of which is preferable to the other because of metal content or because it resists mutilation, will hoard the good money and spend the bad money, thereby driving the good money out of circulation. The observation is named for Sir Thomas Gresham, master of the mint in the reign of Queen Elizabeth I.
