Meaning of the word "bad money drives out good" in English

What does "bad money drives out good" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

bad money drives out good

US /bæd ˈmʌn.i draɪvz aʊt ɡʊd/
UK /bæd ˈmʌn.i draɪvz aʊt ɡʊd/
"bad money drives out good" picture

Idiom

the principle (Gresham's Law) that when two forms of money are in circulation, the one with less intrinsic value will push the more valuable one out of use

Example:
When the government issued cheaper coins, people hoarded the gold ones, proving that bad money drives out good.
In economics, Gresham's Law states that bad money drives out good.