Vocabulary Entry

seigniorage

|noun

noun

The profit made by a government from issuing currency, especially when the cost of producing the currency is less than its value.

Example Sentences

"The government collected significant seigniorage as more people began using the new currency."

"Seigniorage can be an important source of revenue for developing countries."

"During times of inflation, the seigniorage revenue often increases as more money is printed."