Bad Money

In the 16th century, the financial advisor to Queen Elizabeth I, Sir Thomas Gresham, observed a peculiar human behavior that would forever bear his name. When the government began minting new coins that were debased—containing less pure silver than the older coins of the same face value—the old, pure coins completely vanished from circulation.
This is Greshams Law: "Bad money drives out good." The logic is flawless. If a citizen holds two coins legally worth one dollar, but one is made of pure silver and the other of cheap copper, they will hoard or melt down the silver and use the copper to pay their taxes. This principle extends far beyond Renaissance coinage; it explains modern capital flight, the hoarding of hard assets during hyperinflation, and the psychological defense mechanisms of citizens trapped in failing fiat systems.
This book traces the impact of Greshams Law across centuries of economic crises. You will learn how currency debasement caused the fall of the Roman economy, how identical mechanics drive modern crypto-currency hoarding, and how governments continually fail to legislate away basic human self-interest.
Protect your purchasing power by understanding historical precedent. By mastering Greshams Law, you can recognize the early signs of monetary decay and position your assets accordingly.