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Gresham's law definition

Gresham's law (gres̸h′əmz)

the theory that when two or more kinds of money of equal denomination but unequal intrinsic value are in circulation, the one of greater value will tend to be hoarded or exported; popularly, the principle that bad money will drive good money out of circulation

Etymology: after Sir Thomas Gresham (1519-79), Eng financier, formerly thought to have formulated it

Webster's New World College Dictionary Copyright © 2009 by Wiley Publishing, Inc., Cleveland, Ohio.
Used by arrangement with John Wiley & Sons, Inc.

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