seigniorage
1
9.9
- noun
- /ˈseɪnjərɪdʒ/
- Specialized
:
señoraje
- Most central banks rely on seigniorage from their currency, providing a steady income that supports national expenditures.
- seigniorage revenue
- seigniorage profits
Examples
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The government generates substantial seigniorage when it issues new currency, as the cost of producing the money is much lower than its face value.
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Categorizing seigniorage benefits to taxpayers as a "windfall" is a poor idea.
Blog text (10) -
But then central banks could also borrow against their future stream of seigniorage revenue to do the same thing.
Blog text (16) -
America could return to Argentina its share of seigniorage revenue, the profit that a central bank makes when people use its currency.
Academic text (1999) -
Originally, seigniorage was the revenue enjoyed by monarchs and local rulers from minting coins.
Academic text (2001) -
The government sector purchases a share of produced goods, financed by collecting lump sum and flat rate income taxes, and by issuing new nominal money balances, which provides seigniorage.
Academic text (2018) -
Historically, kings benefited from seigniorage, which was their profit from minting coins rather than just a charge for the metal used.
How Profitable
Surface Forms
Morphology
Etymology
Seigniorage comes from an old French word seigneur meaning 'lord', because in the past a lord or ruler had the right to make coins and take a fee. So seigniorage is like the 'lord's profit' from minting money, which explains why today it means the government's profit when it issues currency.