Seigniorage


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Seigniorage

The amount of goods and services that the government obtains by printing new money in a given period. Often we consider this in real terms, by dividing the new money by the price level.

Seigniorage

The money a government generates when it prints more money. This usually is calculated as the difference between the face value of the money and the value of the bullion backing it.
References in periodicals archive ?
Seigniorage could be automatically redistributed to
Some of the costs looked at included the loss of independent monetary policy, global competitiveness, loss of lender of last resort ability, seigniorage costs, and various other start-up costs.
In this context, access to seigniorage was (at least for colonial administrations) an influential argument favouring a currency board over the obvious alternative of using sterling (or some other appropriate foreign currency) as the domestic medium of exchange.
Countries that already use the dollar extensively presumably do not lose much in terms of seigniorage, and the financial risk of banks and corporates associated with devaluation could be eliminated.
Additionally, seigniorage signals that the state's control of money and the state's control of public revenue and expenditure cannot be separated, and public finance is an intensely political process.
We will get all the seigniorage as those dollars start rising over time.
Price stability eliminates this distortion, but at the same time reduces seigniorage revenue.
Alternative sources of revenue such as corporation tax, a carbon/energy tax or seigniorage (a tax on profits from assets held by the European Central Bank) may be considered in future.
Similarly, because the usage of electronic money is likely to grow relatively slowly, its introduction is unlikely to affect materially the seigniorage revenues received by the Treasury Department in the near term.
Cash Asmussen is looking for his fourth win in the event and partners Seigniorage, who might just be peaking at the right time.