Gresham's law

Gresham's law is all about money. It explains what happens when two kinds of money have the same value but people don't trust one of them.

Let's say that the government started printing money called "piggy dollars" that was just like regular dollars, but not everyone trusts that the piggy dollars are worth as much. This means that people have an easier time trading something that they know is worth a lot (like regular dollars) instead of something they don't trust (piggy dollars).

So, according to Gresham's law, the bad money (piggy dollars) will be used in trading, while the good money (regular dollars) will be saved. This means that the bad money will be the main form of currency, while the good money will be used less and less. This is bad because it means that people won't be able to use their good money when they want to buy something.