seignorage
/ˈsiːnjərɪdʒ/
noun
- The profit made by a government from issuing currency, especially the difference between the face value of coins and their production cost.
- Economists study seignorage as a source of revenue for the state.
- The government earns seignorage when it mints new coins at a cost lower than their face value.
- Inflation can increase seignorage because the real value of money decreases over time.