reidwalley on Nostr: I’ve always heard Gresham’s Law stated as “bad money driving out good money.” ...
I’ve always heard Gresham’s Law stated as “bad money driving out good money.”
But, damn, Murray Rothbard’s interpretation is hella better!
“Champions of the government's coinage monopoly have claimed that money is different from all other commodities, because "Gresham's Law" proves that "bad money drives out good" from circulation.
“Hence, the free market cannot be trusted to serve the public in supplying good money. But this formulation rests on a misinterpretation of Gresham's famous law.
“The law really says that "money overvalued artificially by government will drive out of circulation artificially undervalued money."”
- What Has Government Done To Our Money; page 18
But, damn, Murray Rothbard’s interpretation is hella better!
“Champions of the government's coinage monopoly have claimed that money is different from all other commodities, because "Gresham's Law" proves that "bad money drives out good" from circulation.
“Hence, the free market cannot be trusted to serve the public in supplying good money. But this formulation rests on a misinterpretation of Gresham's famous law.
“The law really says that "money overvalued artificially by government will drive out of circulation artificially undervalued money."”
- What Has Government Done To Our Money; page 18