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70 sats \ 2 replies \ @Bell_curve 25 Oct \ on: MONEY CLASS OF THE DAY: Sir Thomas Gresham and the Economic Law He Didn't Make econ
Fixed exchange rates are a problem.
Bretton Woods agreement created fixed exchange rates until 1971 when Nixon removed link between gold and dollars.
Tobacco used to be currency in North Carolina. Bad or counterfeit tobacco was inflationary because people held on to the good tobacco
@siggy47 has a personal story from childhood about Gresham
I can't find @siggy47 comment... if I recall correctly: his dad saved the 'expensive' pennies or nickels dimes and quarters
Prior to 1965 dimes and quarters were made of 90 percent silver and 10 percent nickel but with the Coinage Act of 1965 the silver content was removed and replaced with 75 percent copper and 25 percent nickel. Almost immediately the high intrinsic value dimes and quarters began to be hoarded as Gresham’s Law kicked in. Today a pre-1965 silver dime is worth about $2.40 in inflated Federal Reserve Notes.
We should stop creating more pennies or replacing lost pennies.
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Yes. You are correct. As a little kid my dad had me go through his drug store's cash register to pull out the silver dimes and quarters to bring home. He kept the new stuff in the register for change. I could spot the old coins because they didn't have the thin, brown line on the rim caused by some alloy. I still have those old bags somewhere.
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