Gresham’s Law is essentially a monetary observation of how people tend to use currency when both, old and new currency is in circulation. To some extent, it is still applicable to modern economic situations. History of Gresham’s Law – a Case of Good and Bad Shillings The easiest way to describe Gresham’s Law is to say that “bad” money tends to drive away “good” money. However, the good and bad in currency can be confusing. This principle originated during a time in history when currency was circulated in the form of coins. Sir Thomas Gresham was one of the more noted financial advisers to Queen Elizabeth I. During his tenure, he