Gresham's law

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Named in 1858 by Henry Dunning Macleod, after Sir Thomas Gresham (1519–1579), English financier during the Tudor dynasty.

Proper noun[edit]

Gresham's law

  1. An economic principle stating that, when a government 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 "bad money drives out good".