seigniorage

Definition

The profit that results from the difference in the cost of printing money and the face value of that money.

Use seigniorage in a sentence

The seigniorage was realized by the federal reserve bank who was able to freely print money entirely at their discretion.

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Because printing money costs less than the value of that money, the government is able to use the seigniorage to fund other things.

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The profit was called seigniorage and it was a term that made me run to the dictionary and look up to understand that it had to do with printing money.

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