Gresham's Law : If you had pesos
and dollars in your pocket, and pesos were devaluing at 50% per annum, while the
dollar only at 2%, then given the choice you and everyone else would save the
dollars and spend the pesos. Money is used both for exchange and for wealth
storage. People keep the type which stores value well and spend whichever does
not. This is so intuitively natural to people that it occurs almost
without exception, and becomes a phenomenon known as Gresham's Law - which
simply states "Bad money drives good money out of circulation."