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Learnings Mental Models

Understanding the Mental Trap of Bad Money Driving Out Good

Introduction In the realm of decision-making, there exists a mental model known as Gresham’s Law. Coined by economist Sir Thomas Gresham in the 16th century, this concept states that bad money tends to drive out good money from circulation. Gresham’s Law highlights how individuals and societies, driven by self-interest, often prioritize inferior or counterfeit currency […]