5 thoughts on “It is said that the inferior coins are expelled from good coins.”
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"Good coins cannot expel bad currency" are a misunderstanding. The prerequisite for "inferior coins to expel good coins" with "two actual values and the same value value". Once this prerequisite does not exist, it is not established.
The so -called inferior currency expelling good currency is that in the case of two actual values that are different and the value of the face value is also circulating at the same time, the actual value (so -called good currency) will inevitably be melted, output and exit circulation Fields; and with low actual value (so -called inferior currency), it will fill the market.
Under a complete market mechanism, inferior coins cannot expel good coins. Therefore, the correct expression of Grein's law is that if the exchange price is the same, the inferior coins are expelled from good coins. The price of good coins and inferior coins can be the same. It is derived from the government's mandatory regulations. The latter has given birth to arbitrage space and created conditions for the discharge of good coins.
The capital expansion information:
The factors to cause inferior coins to expel good coins:
Under the entire market, even if they are used for domestic payment, the competitive mechanism will ensure that the occurrence of good coins and bad coins will occur between the occurrence of good coins and bad coins. Separation (for example, the price of good coins is low, and the price of inferior coins is high), so it is impossible for inferior coins to expel good coins. Only good coins and inferior coins are equivalent in some uses, and in other purposes different values, there is room for arbitrage, and infinity can expel good coins.
The mandatory regulations of the government are the root causes of inferior coins and good coins in some aspects. Similarly, although the old coins are less than the same new coin due to wear, the precious metal content must be accepted according to the face value in China, and the price is equivalent to the new coin. This compulsory regulations that hinder the role of the market are the basis for the inferior currency to expel good coins.
Reference information Source: Baidu Encyclopedia-Inferior coins expel good coins
I think this statement makes sense. In fact, this statement is to reflect a more common social phenomenon, and give a very common example in life. We all have the experience of buying goods. If we buy fake and shoddy products, we find that the quality of counterfeit and shoddy products is not bad, and such cottage products are also very low. What kind of products would you choose to buy? Many people may choose to buy cottage products after repeated thinking, because there are not much difference between comparing cottage products and genuine products from various aspects. It is better to buy cottage products at a less cost.
Once there are more people with such ideas, the quality of good quality cannot sell cottage products, then these genuine markets will gradually shrink. The more serious consequences are that the genuine product completely disappears, and what people see in the future will be more and more cottage products. Even if you want to buy genuine products, you can't find it.
The is more common. Although we all know that spitting is wrong, we all know that the garbage classification is required, but in actual life, many people will throw the garbage into the trash can in the trash can. Go, do not consider the issue of classification at all. If you need to spend a long time, but others do not sort it at all, you only need to throw it to the trash can in one second. At this time, do you choose a honest classification or throw it directly like him as if he will throw it directly. What about the trash can?
Anyway, he will not be punished like he does it. Many people have good habits, but they have learned to see others lose their garbage, so he also learned. Essence Because it is very simple to hold bad coins, human nature is lazy and greedy, so it is difficult to remove bad coins.
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Because good currency usually appreciates after a long time.
It is mainly because the effects received by bad coins are relatively fast and the value is unstable.