Gresham’s Law in 2026: Why “Smart Money” is Disappearing from the System
Gresham’s Law, the principle that “bad money drives out good,” remains a relevant concept in 2026 for understanding currency behavior. It describes a phenomenon where, when two forms of money with different intrinsic values circulate at the same legal face value, people rationally choose to spend the “bad” money (with lower intrinsic value) and hoard the …