Because individuals will lose value if they attempt to coin the undervalued metal, only the overvalued metal will actually circulate as currency.
A nation uses two different metals for its currency -- one overvalued, the other undervalued. Because individuals will lose value if they attempt to coin the undervalued metal, only the overvalued metal will actually circulate as currency. This is an example -- for 10 points \-- of what Scotsman's economic law, which states that bad money drives out good?
A nation uses two different metals for its currency -- one overvalued, the other undervalued.
{Gresham}’s Law