Is Gresham's Law a special instance of a more general phenomenon?
I've just encountered three alternate presentations of Gresham's law in different contexts, and am beginning to convince myself that it's a specific case of a general type of systems failure.
Herman E. Daly describes a "Gresham's Law of Internalization": with free trade and free capital mobility come a standards-lowering race. Bad cost accounting drives out good cost accounting. Ricardo's comparative advantage of trade assumed immobile capital....
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#economics #greshamslaw #systems #systemsfailure #market #marketfailure
http://www.reddit.com/r/dredmorbius/comments/2h63fp/is_greshams_law_a_special_instance_of_a_more/
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