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<p>[QUOTE=&quot;doug444, post: 2634953, member: 38849&quot;]For Garlicus, here is the big fancy word you&#039;re searching for:</p><p><br /></p><p><b>Seigniorage</b> <a href="https://en.wikipedia.org/wiki/Help:IPA_for_English" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Help:IPA_for_English" rel="nofollow">/ˈseɪnjərɪdʒ/</a>, also spelled <b>seignorage</b> or <b>seigneurage</b> (from <a href="https://en.wikipedia.org/wiki/Old_French" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Old_French" rel="nofollow">Old French</a> <i>seigneuriage</i> &quot;right of the lord (<i>seigneur</i>) to mint money&quot;), is the difference between the value of money and the cost to produce and distribute it. The term can be applied in the following ways:</p><p><span style="color: #ff0000"><br /></span></p><p><span style="color: #ff0000">[This is the start of a lengthy article in Wikipedia...]</span></p><ul> <li>Seigniorage derived from specie—metal <a href="https://en.wikipedia.org/wiki/Coin" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Coin" rel="nofollow">coins</a>—is a <a href="https://en.wikipedia.org/wiki/Tax" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Tax" rel="nofollow">tax</a>, added to the total price of a coin (metal content and production costs), that a customer of the <a href="https://en.wikipedia.org/wiki/Mint_%28coin%29" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Mint_%28coin%29" rel="nofollow">mint</a> had to pay to the mint, and that was sent to the sovereign of the political area.</li> <li>Seigniorage derived from notes is more indirect, being the difference between interest earned on securities acquired in exchange for bank notes and the costs of producing and distributing those notes.</li> </ul><p>The term also applies to monetary seignorage, where sovereign-issued securities <a href="https://en.wikipedia.org/wiki/Monetization#Monetizing_debt" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Monetization#Monetizing_debt" rel="nofollow">are exchanged</a> for newly minted bank notes by a central bank, thus allowing the sovereign to &#039;borrow&#039; without needing to repay. However, monetary seignorage refers to the sovereign revenue obtained through routine <a href="https://en.wikipedia.org/wiki/Monetization#Monetizing_debt" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Monetization#Monetizing_debt" rel="nofollow">debt monetization</a>, including expanding the <a href="https://en.wikipedia.org/wiki/Money_supply" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://en.wikipedia.org/wiki/Money_supply" rel="nofollow">money supply</a> during GDP growth and meeting yearly inflation targets.</p><p><br /></p><p>Seigniorage is a convenient source of revenue for some governments. By providing the government with increased purchasing power at the expense of the public&#039;s purchasing power, it imposes what is metaphorically known as an <b>inflation tax</b> on the public.[/QUOTE]</p><p><br /></p>

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