gresham's law Synonyms
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gresham's law Meaning
gresham's law (n)
(economics) the principle that when two kinds of money having the same denominational value are in circulation the intrinsically more valuable money will be hoarded and the money of lower intrinsic value will circulate more freely until the intrinsically more valuable money is driven out of circulation; bad money drives out good; credited to Sir Thomas Gresham
gresham's law Sentence Examples
- Gresham's Law states that in a monetary system, people tend to hoard more valuable coins and spend less valuable ones.
- The principle of Gresham's Law has been observed throughout history, with cheaper currencies often driving out more expensive ones.
- In times of economic uncertainty, Gresham's Law can lead to a situation where the circulation of bad money displaces good money.
- Governments and economists have sought ways to mitigate the effects of Gresham's Law, such as implementing bimetallic currency systems.
- Gresham's Law can also apply to other areas, such as the circulation of ideas or goods, where inferior versions may push out superior ones.
- The concept of Gresham's Law was first formulated by Sir Thomas Gresham in the 16th century, who observed the phenomenon in England's currency system.
- Gresham's Law has been used to explain why certain cryptocurrencies have failed to gain widespread adoption, as their value has been eroded by less valuable competitors.
- In a free market economy, Gresham's Law can lead to a situation where monopolies or oligopolies emerge, as smaller competitors with inferior products are driven out.
- Gresham's Law suggests that in a monetary system, the demand for money is influenced by its intrinsic value and not solely by its nominal value.
- The implications of Gresham's Law extend beyond monetary systems, highlighting the potential for inferior or less desirable things to displace superior or more desirable ones in various contexts.
FAQs About the word gresham's law
(economics) the principle that when two kinds of money having the same denominational value are in circulation the intrinsically more valuable money will be hoa
No synonyms found.
No antonyms found.
Gresham's Law states that in a monetary system, people tend to hoard more valuable coins and spend less valuable ones.
The principle of Gresham's Law has been observed throughout history, with cheaper currencies often driving out more expensive ones.
In times of economic uncertainty, Gresham's Law can lead to a situation where the circulation of bad money displaces good money.
Governments and economists have sought ways to mitigate the effects of Gresham's Law, such as implementing bimetallic currency systems.
