Gresham’s law: people tend to spend weaker money and hoard the harder money.
➡️ Therefore the harder money is not much used as a means of payment. However it is used for savings.
Thiers’ law: at one point, weaker money is losing its purchasing power so fast that merchants stop accepting it and prefer being paid with harder money.
➡️ Harder money then replaces weaker money as a means of payment.
CodingInLondon / Matt
npub16n…lftma
2024-01-14 20:02:46
Author Public Key
npub16nd6gm54kk5jf72hzv4glwcqwtka8s28p8x6m4cddxlmum3d8nhs9lftmaPublished at
2024-01-14 20:02:46Event JSON
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"content": "Gresham’s law: people tend to spend weaker money and hoard the harder money. \n\n➡️ Therefore the harder money is not much used as a means of payment. However it is used for savings.\n\nThiers’ law: at one point, weaker money is losing its purchasing power so fast that merchants stop accepting it and prefer being paid with harder money. \n\n➡️ Harder money then replaces weaker money as a means of payment.",
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}