Money Quote by Murray Rothbard
““At any rate, the correct version of Gresham's law is simply an application of the theory of price control causing shortages to money, with the two moneys operating side-by-side.””
About This Quote
Gresham’s law reflects price control leading to money shortages, illustrating how policy can distort markets.
In simple terms: Price controls cause money shortages, per Gresham’s law.
Key Takeaway
Avoid price controls to prevent market distortion.
Themes
economics
policy
money
Mood
analytical
critical
Type
economic
theoretical
When to use this quote
- government regulation
- monetary policy
- financial crises
Key Concepts
theory of price control
market shortages
Questions to Reflect On
- How do price controls affect different economies?
- What alternatives exist?
A Different Perspective
Implementation may have unintended side effects.
![“[Gresham's Law]: Bad money drives out good money.” quote by Thomas Gresham](https://sms4smile.com/quotes/img-quotes/bd3/thomas-gresham-105117_good-money_gresham-s-law-bad-money-drives-out-good_1380878.jpg)
