Gresham's law

noun

Gresh·​am's law ˈgre-shəmz- How to pronounce Gresham's law (audio)
: an observation in economics: when two coins are equal in debt-paying value but unequal in intrinsic value, the one having the lesser intrinsic value tends to remain in circulation and the other to be hoarded or exported as bullion
broadly : any process by which inferior products or practices drive out superior ones

Word History

Etymology

Sir Thomas Gresham

First Known Use

1858, in the meaning defined above

Time Traveler
The first known use of Gresham's law was in 1858

Dictionary Entries Near Gresham's law

Cite this Entry

“Gresham's law.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/Gresham%27s%20law. Accessed 9 Dec. 2022.

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