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Kind of an intriguing reversal of Gresham's Law.  We're starting to see Good Money drive out Bad.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Fri Nov 23rd, 2007 at 01:24:00 PM EST
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Isn't information the difference here? People can see that certain money isn't good, hence it can be driven out, whilst in Gresham's day bad money looked like good money...
by Metatone (metatone [a|t] gmail (dot) com) on Fri Nov 23rd, 2007 at 01:43:36 PM EST
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Gresham observed people would spend the Bad Money, so it would continue to circulate, and horde the Good Money.  This presupposes they had the information necessary to distinquish.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Fri Nov 23rd, 2007 at 02:42:25 PM EST
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That's exactly Gresham's law. When people consider a currency to embody lasting value, they tend to hold on to it. Currency considered of doubtful value (including counterfeit), will be passed on like a hot potato.

This was particularly applicable in the days of gold and silver coin, where the weight of precious metal mattered. In colonial America, shillings were little appreciated because they were often clipped to reduce the weight of silver. The "good" money people tried to get paid in and to hoard was the Spanish silver piece of eight, or dollar. Hence...

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Nov 23rd, 2007 at 03:26:48 PM EST
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