Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

Hot take on economics 

@freakazoid So, dynamics can turn up in various forms. I've tried (unsuccessfully) to catalogue the in the past.

There's fiat or imposed value, as with coin. Also with transjurisdictional standards, such as divorce law and shipping registries ("flags of convenience"). Whatever the *minimum* acceptable *somewhere* is, is acceptable *everywhere*.

There's effective perceived value -- Mencken's "Brayard", or consumer technologies, or bicycles.

@o @woozle

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@freakazoid I think that's most of the cases I've encountered.

A fun little exercise is running the query "a gresham's law of" or "a kind of gresham's law" in Google Books and seeing what turns up.

Examples: Divorce law, shipping regulations, environmental regulations, morals / ethics, neighbourhoods, legal citations, academia, students. It's a diverse and interesting list.

@o @woozle

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@dredmorbius @woozle @o I suspect all of those are based on the pop phrasing of the law, "Bad X drives out good." But AFAICT all of the actual literature of the law is specific not just to money but to money that people are prohibited from discounting.

I saw this in India, where people who still had prohibited coins or bills would try to pass them off every chance they got.

@freakazoid *Much* of the discussion of is precisely as you describe it. To an extent that's quite frustrating to me.

*Some* is not, though much of that masquerades as discussions of information asymmetries. Those are *part* but *not all* of the Greshm's dynamic (a proper subset).

A reason I've gone on this is because I'm convinced that this *IS* a highly generalisable, and key, fundamental, and problematic, economic dynamic.

@o @woozle

@freakazoid More to the point, "all" of the mainstream economics literature on Gresham's Law is *a very small collection*, particularly as regards numerous other (and frankly, less significant) topics.

Which is one of my more general criticisms of economics-as-science: it's obtusely blind to its own problem areas. Gresham's Law being only one instance.

@o @woozle

@freakazoid Though, to take you 2nd 'graph: the actual details of a GL mechanic *in the case of money* is interesting. Bad money *tends* to drive out good, though in specific ways and subject to various limitations.

If there's only a *little* "bad money", it does so to a limited extent.

If there's an alternative quality currency, people will often switch to that -- USD today, Spanish Reals / Pieces of Eight in early America. Good/bad is specific to *A* currency, not *ALL*.

@o @woozle

@freakazoid Also, trying to dispose of prohibited (or counterfeit, or altered) bills, etc., isn't the original notion of GL, where an *officially sanctioned* debased currency drives out bad.

It's effectively fraud -- *attempting* to pass a *substandard* token as a *standard* one. Rather than having *standard* tokens of differing intrinsic value (usually: specie content) valued identically by official sanction.

Which gets us to the notion of seignorage...

(Ask if you want.)

@o @woozle

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