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Get a FREE list of 10 potential customers with their names, emails and phone numbers. When it comes to the concept of fiat money, one of the most interesting relationships to analyze is the one it shares with Gresham's Law. This economic principle states that "bad money drives out good," which means that when two forms of currency are in circulation, people will hoard the one that has the most value and use the other to pay for goods and services.
This dynamic has significant implications for fiat money , which is not backed by a commodity such as gold or silver and instead relies on the government's guarantee of its value.
Here are some key insights to consider when examining the relationship between Gresham's Law and fiat money :.
