The return a sovereign (government) earns from creating (minting) money is called

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01-09-2017
Social Studies

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The return a sovereign (government) earns from creating (minting) money is called

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Erythrosin17 Erythrosin17 · Answer 1 · 2017-09-11T14:31:43+02:00

Erythrosin17 Erythrosin17

11-09-2017

The return a sovereign (government) earns from creating (minting) money is called seigniorage. It is the difference of the value of money and the amount it cost to produce it. If this value is positive , then the government would surely have a profit however if it is negative, then there would be an economic loss.

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