What Is Currency Debasement?
The ruler lowers the precious metal in each coin, by adding cheaper metal or by making coins lighter; the coin looks the same.
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1.What is currency debasement?
The ruler lowers the precious metal in each coin, by adding cheaper metal or by making coins lighter; the coin looks the same.
2.What is intrinsic value?
Face value is the number stamped on the coin; intrinsic value is the metal inside.
3.What does Gresham's law say?
If two coins buy the same, you spend the lighter one and keep the heavier one; Thomas Gresham did not invent the law and the saying comes from Jevons in 1875 (Cleveland Fed).
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Education only. Not financial advice.