Part 12/17:
Jacques Gresham's Law—"bad money drives out good"—was vividly observed in various epochs. When governments forced the acceptance of debased coins, people hoarded the real gold or silver and used the questionable currency only for transactions where the lighter, less valuable coins were accepted.
In modern times, central banks and government policies continue this trend—devaluing currencies through inflationary practices supported by the banking system, which was freed from the constraints of the gold standard after 1971. This shift allows for unchecked credit expansion, leading to persistent inflation.