Coins were first made with gold, silver and other pcious metals, which gave them their value. Over time, the amount of pcious metals used to make the coin decreased because the metals were worth more on their own than when minted into the coin itself. If the value of the metal in the old coins was higher than the coin's face value, people would melt the coins down and sell the metal. Similarly, if a low quality good is passed off as a high quality good, then the market will drive down prices because consumers won't be able to determine the good's real value.
Gresham's Law
外汇网2021-06-19 13:40:37
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