1. During the War of Liberation, the government of the Shaanxi-Gansu-Ningxia Border Region issued its own "border currency", but it was never able to expel the "legal currency" of the Kuomintang government. Because the border region economy is weak, the border currency is not good, and the legal tender is good.

In the border area between the border area and the Kuomintang-controlled area, both currencies are in use, but businessmen generally buy goods directly in the border area with French currency, or try to collect them directly after selling goods in the border area trade. In this way, legal tender has partially replaced border currency in border trade, which is obviously a phenomenon that "good money drives out bad money".

2. In the early days of the establishment of Shenzhen Special Zone, Hong Kong dollars, foreign exchange certificates and RMB were allowed to circulate at the same time. In shops in Shenzhen, most goods are also priced in three ways. From the perspective of currency recovery, Hong Kong dollars account for about 30%, and foreign exchange certificates account for 20%.

This also shows that Hong Kong dollars and foreign exchange certificates, as good money, have driven RMB out of circulation by 50%, and there has also been a phenomenon that "good money drives out bad money".

3. After the disintegration of the Soviet Union in the 1990s, the ruble changed its face value three times and seriously depreciated, from about 0.65 rubles to 1 USD to 5,000-6,000 rubles to 1 USD.

Therefore, in Sino-Russian border trade, both vendors are willing to use RMB instead of ruble. Here, RMB is good money and ruble is bad money, which is obviously a phenomenon that "good money drives out bad money".

Extended data:

Scope of application of Gresham's law

Gresham's law only applies to the case of maintaining a fixed exchange rate between several legal currencies. Hayek put forward the opposite understanding, if the exchange of books is variable. So inferior paper money can only get a lower valuation.

In particular, if its value continues to decline, people will sell it immediately. The elimination process of Gresham's law will continue. In the end, there will be an optimal currency among the currencies issued by different institutions, which will expel people from using inconvenient or worthless currencies.

Gresham's law points out that this will not be realized in digital currency, because people will constantly create new digital currency based on the simplest primitive profit-seeking motives.

Baidu Encyclopedia-Gresham Rule