Circulation Quote by Thomas Gresham
“When depreciated, mutilated, or debased coinage (or currency) is in concurrent circulation with money of high value in terms of precious metals, the good money automatically disappears.”
About This Quote
Source Treatise: Gresham's Law, 16th century economic writings
When lower-quality money circulates with higher-quality money, the better money disappears from the market.
In simple terms: Bad money drives out good money.
Key Takeaway
Prefer stable, high-quality currency.
Themes
economics
currency
inflation
Mood
cautious
analytical
Type
economic
historical
When to use this quote
- banking
- investment
- government policy
- daily transactions
Key Concepts
Gresham's Law
monetary policy
Questions to Reflect On
- How does this law affect modern fiat currencies?
- What safeguards can prevent loss of value?
A Different Perspective
If people hoard good money, circulation may stall.
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