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Gresham’s law: people tend to spend weaker money and hoard the harder money. ➡️ Therefore the harder money is not much used as a means of payment. However it is used for savings. Thiers’ law: at one point, weaker money is losing its purchasing power so fast that merchants stop accepting it and prefer being paid with harder money. ➡️ Harder money then replaces weaker money as a means of payment.
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