Gresham's law

proper noun

A principle stating that when a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.

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Meanings

proper noun
  1. economicsA principle stating that when a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.

Origin

Named after English merchant and financier Thomas Gresham (1519–1579) by Scottish economist and lawyer Henry Dunning Macleod in 1858.

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Cite this entry
APA

Gresham's law. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/Gresham's%20law

MLA

“Gresham's law.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Gresham's%20law. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “Gresham's law,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/Gresham's%20law.

Source: Gresham's law on Wiktionary, CC BY-SA 4.0.