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What does bad money drives out good mean?

Looking for the meaning or definition of the word bad money drives out good? Here's what it means.

Proverb
  1. Debased coinage (with low levels of precious metals) replaces purer coinage (with higher levels of precious metals).
  2. People hoard good currency and other assets and attempt to pass inferior currency and assets to others in exchange.
  3. (metaphorically, in organizations and labor markets) Overvalued mediocre talent replaces undervalued real talent.
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