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and Economics (Routledge &Kegan Paul, London and Chicago, 1967) and Fetter, "Some Neglected Aspects of Gresham's Law" (Quarterly Journal of Economics,
XLVI, 1931/2)>. If the law does two kinds of money completely interchangeable
At payment of debts also forces creditors to accept a coin with the smaller
The maintenance of gold instead of a coin with the big maintenance, debtors, certainly,
Will pay debts only coins of the first type and will find more profitable
Application for the second.
Unlike a case with fixed exchange rates established by the law,
At floating exchange rates money of the worst quality will be appreciated more low, and
People will try to get rid of them as soon as possible, in particular, if
There is a threat of the further falling of their value. Selection process will be
To proceed until people will not come to the best kind of money among
Let out by different agents. During this process quickly will occur
Replacement of that money which are considered inconvenient or costing nothing.
Relations if only we do not take into consideration it anywhere obviously not
The formulated assumption about compulsorily established fixed
The exchange rate.> it is valid, in all cases when inflation is untwisted
Really, any subjects possessing stabler value, from
Potatoes to cigarettes and cognac, from eggs to a foreign currency (for example,
Dollar banknotes), start all to be used more widely as money.
1937, the river 174: "In the conditions characterised by the big mistrust to the national
To currency, the principle of the law of Greshema turns to the contrast and good
Money supersedes bad, and value of the last constantly falls ". But even
Breshiani-Turroni does not specify that solving difference consists not in "the big
Mistrust ", and available or absence compulsorily established and
Effectively controllable fixed exchange rates.> so occurred to
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