Whose law states that 'bad money drives out good'?

Correct answer: Gresham's

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What people think about it: 3 Comments
UniqueSquid25533
UniqueSquid25533
Asiotye, So please explain what it is about because I was interested in the explanation.
Tom
Tom
Good money, say a gold or silver coin with nominal value close to the value of the metal, will be displaced, in the common currency, by bad money/Fiat money, money whose value is derived by government guarantee. I chose Rothbard, because he was an economist from the Austrian school.
Dorania
Dorania
It was Copernicus who said it first.