Mises Wire
Author:
Juan Fernando Carpio
Online Publish Date:
Economics students all over the world learn Gresham’s Law in a severely distorted way. They are told that “bad money drives good money out of the market” as if that was a law of markets. It’s not. It’s a law (inevitable effect) of State intervention in the money market. Bad money drives good money out of the market only when the former is subject