gresham's law

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Observation that "bad money drives out good. " It is named for Sir Thomas Gresham (1519-1579), financial agent of Queen Elizabeth I, who was one of the first to elucidate it (he had been preceded by Copernicus). The meaning expressed is that, if two coins have the same face value but are made from metals of unequal value, the cheaper will tend to drive the other out of circulation; the more valuable coin will be hoarded or used for foreign exchange instead of for domestic transactions
{i} (Economics) principle stating that bad money drives good money out of circulation because a currency of lower inherent value will be used money one of higher inherent value will be stockpiled (named after Thomas Gresham)
(economics) the principle that when two kinds of money having the same denominational value are in circulation the intrinsically more valuable money will be hoarded and the money of lower intrinsic value will circulate more freely until the intrinsicallymore valuable money is driven out of circulation; bad money drives out good; credited to Sir Thomas Gresham