The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Seignorage

  • S. Black
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1490

Abstract

Full-bodied monies such as gold coin contain metal approximately equal in value to the face value of the coin. Under the gold standard, metal could be brought to the mint and freely coined into gold, less a small seigniorage charge for the privilege. Subsidiary or token coin and paper money by contrast cost much less to produce than their face value. The excess of the face value over the cost of production of currency is also called seigniorage, because it accrued to the seigneur or ruler who issued the currency, in early times.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • S. Black
    • 1
  1. 1.