WHAT IS “GRESHAM’S LAW” OF MONEY ECONOMICS?

Is it still relevant today?

Courtesy: www.CertifiedMedicalPlanner.org

The law was named in 1860 by Henry Dunning Macleod, after Sir Thomas Gresham (1519–1579), who was an English financier during the Tudor dynasty. However, there are predecessors.

The law had been stated earlier by Nicolaus Copernicus. It was also stated in the 14th century, by Nicole Oresme in his treatise On the Origin, Nature, Law, and Alterations of Money, and by jurist and historian Al-Maqrizi (1364–1442) in the Mamluk Empire; and noted by Aristophanes in his play The Frogs, which dates from around the end of the 5th century BC.

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IOW: It is the tendency for money of lower intrinsic value to circulate more freely than money of higher intrinsic and equal nominal value (often expressed as “Bad money drives out good”).

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Gresham’s Law applies to new coins and worn coins. Worn coins are likely to have lost some of their metallic weight through wear and tear, so they should have less value than new coins. But government sets them to have the same value. Thus worn coins are artificially overvalued and new coins are artificially undervalued.

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So, is Gresham’s Law still relevant today?

THINK: The modern Bitcoin, and related crypto-currency, controversy? We asked colleague Timothy J. McIntosh CFP® MPH CFA for some insights.

ESSAY: https://medicalexecutivepost.com/2014/01/23/understanding-currencies-bitcoins/

Assessment

Your thoughts are appreciated.

Conclusion

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Risk Management, Liability Insurance, and Asset Protection Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™8Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

MARKETS and OMICRON Launch Week Ahead

Stock Market Investing Perspectives

By Staff Reporters

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What is Health Insurance Network STEERAGE?

By Staff Reporters

What is health plan network steerage?

Network steerage is the practice of directing employees and members on your benefits plan to in-network doctors, hospitals, and other points of care. A network steerage strategy is crucial for healthcare payers who are looking to tackle high healthcare costs. An admirable goal.

CITE: https://www.r2library.com/Resource/Title/0826102549

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But, what is steerage – really?

The Centers for Medicare & Medicaid Services has raised concerns about a hospital practice known as “steerage”–which involves a provider buying commercial insurance coverage for patients who are already eligible for Medicare or Medicaid coverage in order to obtain higher levels of reimbursement.

IOW: The plan charges a fixed monthly fee so its members can receive health care. There will be a small co-payment for each doctor visit; however with the HMO, fees can be fore-casted unlike a fee-for-service insurance plan. Although freedom of choice is given up, out-of-pocket expenses are very low.

RELATED CONCERNS: https://www.fiercehealthcare.com/finance/cms-looking-for-data-practice-steerage-hospitals-voice-concern

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TEXT: https://www.amazon.com/Business-Medical-Practice-Transformational-Doctors/dp/0826105750/ref=sr_1_9?ie=UTF8&qid=1448163039&sr=8-9&keywords=david+marcinko

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