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The tendency for money of lower intrinsic value to circulate more freely than money of higher intrinsic and equal nominal value (often expressed as “Bad money drives out good”)
- ‘If the price set on these alternatives happened to be too high, as often occurred, Gresham's law would apply.’
- ‘A final and vital flaw in a market-basket dollar is that Gresham's law would result in perpetual shortages and surpluses of different commodities within the market basket.’
- ‘As a result, the dollar must decline. The result of a declining dollar is logically a move towards other currencies which in itself is a form of Gresham's law.’
- ‘There is a Gresham's law of culture as well as of money: the bad drives out the good, unless the good is defended.’
- ‘The remedy was to implement a de jure gold standard so as to free England from the effects of Gresham's law and to keep token silver coins in circulation.’
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