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Gresham’s law
 

 

The observation that ‘bad money drives out good’. Bad money ‘vas originally interpreted as coins that had been debased and the law was founded on the claim that consumers would prefer to spend bad money and keep good money. The current dominance of fiat currency has been cited as proof of Gresham’s law.

 

Reference: Oxford Press Dictonary of Economics, 5th edt.