Seigniorage

Seigniorage /ˈseɪnjərɪdʒ/, also spelled seignorage or seigneurage (from the Old French seigneuriage, 'right of the lord (seigneur) to mint money'), is the difference between the value of money and the cost to produce and distribute it. The term can be applied in two ways: Seigniorage /ˈseɪnjərɪdʒ/, also spelled seignorage or seigneurage (from the Old French seigneuriage, 'right of the lord (seigneur) to mint money'), is the difference between the value of money and the cost to produce and distribute it. The term can be applied in two ways: It also applies to monetary seigniorage, where sovereign-issued securities are exchanged for newly-printed banknotes by a central bank, allowing the sovereign to 'borrow' without needing to repay. Monetary seigniorage is sovereign revenue obtained through routine debt monetization, including expansion of the money supply during GDP growth and meeting yearly inflation targets.