Seigneuriage
The Seigneuriage is the direct financial advantage which rises, for the transmitting institute, of the emission of a Monnaie. It is equal to the fiduciary amount of Monnaie emitted, less its manufacturing costs, of putting into circulation and maintenance (replacement of the worn species). To make simpler, it is the fact of financing public déficite by monetary creation what will have as a consequence a rise in inflation
David Ricardo (Principles of political economy), written: “ In the case of monetary creation the advantage would be always for those which would emit the currency of credit; and as the government represents the nation, the nation would have saved the tax, if it, and not the bank, had done itself the emission of this currency… The public would have a direct interest so that it was the State, and not a company of merchants or bankers, who made this emission ”.
Origin
The word comes from former French seignorage where it indicated the right or the preference to beat Monnaie. It passed such as it is in English, though sometimes it is spelled there seigniorage .
See too
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