Seigniorage, s-e-i-g-n-i-o-r-a-g-e, Seigniorage.
Seigniorage is the profit from coining money. It is
the difference between the value of coins as money
and their cost of production. Seigniorage adds to the
Government’s cash balance, but unlike the payment of
taxes or other receipts, it does not involve a transfer
of financial assets from the public. Instead, it arises
from the exercise of the Government’s power to create
money and the public’s desire to hold financial assets
in the form of coins. Therefore, the budget excludes
seigniorage from receipts and treats it as a means of
financing other than borrowing from the public. The
budget also treats profits resulting from the sale of
gold as a means of financing, since the value of gold
is determined by its value as a monetary asset rather
than as a commodity.
Well you learn something new every day, now don't you?
1 comment:
Yay! The supplements bill passed the Senate! Who popped the cork this time? Hehehe
Talk to you later,
Liz
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