- Apr 2023
Tradesmen, too, were quick to see that the exchange might be worked to their advantage; they brought unsaleable stock from their shops, exchanged it for labour notes, and then picked out the best of the saleable articles. Consequently the labour notes began to depreciate; trouble also arose with the proprietors of the premises, and the experiment came to an untimely end early in 1834.
The labour exchange at Gray's Inn Road which began on September 3, 1832, which was based on Robert Owen's idea in The Crisis (June 1832), eventually collapsed in 1834 as the result of Greshham's Law in which "bad money drives out good." In this case, rather than money the object was the relative value of goods which were exchanged based on Labour notes. Labour notes were used to exchange unsaleable stock in shops for labour notes which were then used to purchase more valuable goods. This caused depreciation of the labor notes ultimately causing the experiment to collapse in 1834.
- Mar 2023
The old saying "a bad penny always turns up" is a colloquial recognition of Gresham's Law.
The colloquialism "a bad penny always turns up" is recognition of Gresham's law because the bad (cheap) pennies will be in higher circulation compared with purer or more valuable copper pennies which will have been hoarded or left circulation.
In economics, Gresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will gradually disappear from circulation. The law was named in 1860 by economist Henry Dunning Macleod after Sir Thomas Gresham (1519–1579), an English financier during the Tudor dynasty. Gresham had urged Queen Elizabeth to restore confidence in then-debased English currency. The concept was thoroughly defined in medieval Europe by Nicolaus Copernicus and known centuries earlier in classical Antiquity, the Middle East and China.
Gresham's law is an economic monetary principle which states that "bad money drives out good."
It relates to commodity value, particularly in coinage, where cheaper base metals in coins will cause more expensive coinage to disappear from circulation.
- Nicolaus Copernicus
- Henry Dunning Macleod
- Thiers' law
- Spiro Agnew
- Gresham's law
- Gregory Bateson
- Thomas Gresham