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What Is Gresham's Law?
In economics, Gresham's law is a monetary principle which describes how bad money drives out good.
Sir Thomas Gresham, who lived from 1519 to 1579, originally documented the principle while consulting Elizabeth I after Henry VIII had changed the composition of the English shilling.
In his consultations and letters, he explained how people were aware that the silver content had been reduced in newer shilling coins and had been separating coins based on their production coins; keeping the older coins with more silver while using the new coins with less silver in general commerce.
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