[D-G] greshems's law

Dr. Harald Wenk hwenk at web.de
Fri Jan 7 08:22:35 PST 2005

------- Weitergeleitete Nachricht -------
Von: "Dr. Harald Wenk" <hwenk at web.de>
An: "Sylvie Ruelle" <sylvieruelle at earthlink.net>
Betreff: Re:Datum: Fri, 07 Jan 2005 16:28:23 +0200


"Gresham's Law:

observation in economics that “bad money drives out good.” More exactly,
if coins containing metal of different value have the same value as legal
tender, the coins composed of the cheaper metal will be used for payment,
while those made of more expensive metal will be hoarded or exported and
thus tend to disappear from circulation. Sir Thomas Gresham, financial
agent of Queen Elizabeth I, was not the first to recognize this monetary
principle, but his elucidation of it in 1558 prompted the economist H.D.
Macleod to suggest the term Gresham's law in the 19th century.

Money functions in ways other than as a domestic medium of exchange; it
also may be used for foreign exchange, as a commodity, or as a store of
value. If a particular kind of money is worth more in one of these other
functions, it willbe used in foreign exchange or will be hoarded rather
than used for domestic transactions. For example, during the period from
1792 to 1834 the United States maintained an exchange ratio between silver
and gold of 15:1, while ratios in Europe ranged from 15.5:1 to 16.06:1.
This made it profitable for owners of gold to sell their gold in the
European market and take their silver to the United States mint. The
effect was that gold was withdrawn from domestic American circulation; the
“inferior” money had driven it out."

In my eyes it is realted to simulacras.
If it is not helpfull for you, forget about it.


Harald Wenk

Am Thu, 6 Jan 2005 19:22:49 -0800 schrieb Sylvie Ruelle
<sylvieruelle at earthlink.net>:

> no.  what is it?
> On Jan 6, 2005, at 4:31 PM, Harald Wenk wrote:
>> Hello,
>> Do you know Gresham's Law?
>> Harald Wenk
>> -- Erstellt mit Operas revolutionärem E-Mail-Modul:  
>> http://www.opera.com/m2/
> Ms. Sylvie Ruelle
> http://home.earthlink.net/~sylvieruelle
> rw_artette_lc at yahoo.com

Erstellt mit Operas revolutionärem E-Mail-Modul: http://www.opera.com/m2/

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