##  [Gresham's Law](/greshams-law) 

  ##  [Gresham's Law](https://social.quantumdictionary.io/greshams-law-0) 

  

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**Social Sciences Dictionary**

 







 

 

 

 



 

 

 

 

Definition

When two forms of money are legally accepted at the same nominal value but differ in intrinsic or market value, the currency perceived as overvalued (the “bad” money) will tend to be used in transactions while the undervalued (“good”) money is hoarded, melted, exported, or withdrawn from circulation.