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Bibframe Work

Title
Gresham's law or gresham's fallacy Gresham's law or gresham's fallacy
Type
Text
Genre Form
federal or national government publication
electronic resource
Language
English
Classification
LCC: HB1 (Source: dlc)
Identified By
Lccn: 2007702555
Summary
"The claim that bad money drives out good is one of the oldest and most cited in economics. Economists refer to this claim as Gresham's law. Yet despite its seemingly universal acceptance, this claim does not warrant its status as a law. We find it has no convincing explanations and many overlooked exceptions. We propose an alternative hypothesis based on the costs of using a medium of exchange at a nonpar price: small-denomination currency undervalued at the mint tends to disappear from circulation while large-denomination currency usually circulates at premium. Examining a variety of historical episodes when market and legal prices were different, we find our "law" can explain history much better than Gresham's"--Federal Reserve Bank of Minneapolis web site.
Authorized Access Point
Rolnick, Arthur J., 1944- Gresham's law or gresham's fallacy
Authorized Access Point Variant
Weber, Warren E. Gresham's law or gresham's fallacy