Gresham's law the creditor must accept such money at face value. Nobel Prize winner Robert Mundell believes that Gresham's Law could be more accurately rendered, taking care of the reverse, if it were expressed as "Bad money drives out good "if they exchange for the same price"." The reverse of Gresham's Law, that good money drives out bad money whenever the bad money becomes nearly worthless, has been named "Thiers' law" by economist Peter Bernholz in honor of French politician and historian Adolphe Thiers. "Thiers' Law will only operate later [in the inflation] when the increase of the new flexible exchange rate
Gresham's law been noted much earlier, in the 14th century, by Nicole Oresme. In the year that Gresham was born, 1519, it was described by Nicolaus Copernicus in a treatise called "Monetae cudendae ratio": "bad (debased) coinage drives good (un-debased) coinage out of circulation." Copernicus was aware of the practice of exchanging bad coins for good ones and melting down the latter or sending them abroad, and he seems to have drawn up some notes on this subject while he was at Olsztyn in 1519. He made them the basis of a report which he presented to the Prussian Diet held in