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Unread 16 May 2007, 17:31   #31
Nodrog
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Re: 'Base interest rate' and capitalism

Quote:
Originally Posted by Dante Hicks
Having said that, it's still important. There's probably some research on this already but I'd assume once you reached the stage where more than 5% of (physical) currency was forged you'd start seeing serious side-effects to the economy (i.e. people using dollars instead of your currency or whatever).
Presumably if 5% of all pound sterling notes were bad, people would be more likely to use pound sterling notes than anything else since that would make it more likely they were geting rid of notes that could be forged.

http://en.wikipedia.org/wiki/Gresham's_Law
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