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Seigniorage
(redirected from Seinorage)

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.01 sec.
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.


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The second component is the Federal Reserve's monopoly over the supply of base money, which enables it to be used as a fiscal instrument to generate seinorage revenues.
 
 
 
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