Seigniorage

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Related to Senioriage: seigniorage, Signorage

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.