ग्रेशम का नियम, थिएर का नियम और सेन्योरेज

आज हम देखेंगे की ये नियम क्या है और इनका अर्थव्यवस्ता से क्या नाता है

इन्हे समझना क्यों महत्वपूर्ण है

EP:7 Gresham’s Law, Thier’s Law and Seigniorage

Gresham's law is a principle that states that "bad money drives out good" from circulation and can be applied to the currency markets

Imagine you have two coins with the same legal tender face value – say one penny.

However, one is made of silver and the other of copper. People will hold onto the silver coins and use just the copper ones for payment.

The ‘good’ money (silver) will disappear from circulation, because everybody hoards it, leaving just the ‘bad money’ (copper) in circulation.

Thiers’ law states that good money will drive out bad money. Thiers’ law is the complement of Gresham’s law.

Thiers’ law is most applicable when a currency loses so much value that it is no longer accepted as a means of payment by merchants. In most countries, legal tender laws make it illegal to reject the local currency as a means of payment, but these laws become ignored and obsolete under conditions such as hyperinflation.

What Is Seigniorage?

Seigniorage is the difference between the face value of money, and the cost to produce it.

Seigniorage is counted as revenue for a government when the money it creates is worth more than it costs to produce.