Gresham's lawGresham's law
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
Origin of Gresham's lawafter Sir Thomas Gresham (1519-79), Eng financier, formerly thought to have formulated it
The theory holding that if two kinds of money in circulation have the same denominational value but different intrinsic values, the money with higher intrinsic value will be hoarded and eventually driven out of circulation by the money with lesser intrinsic value.
Origin of Gresham's lawAfter Sir Thomas Gresham.