seigniorage

seigniorage
/seen"yeuhr ij/, n.
1. something claimed by a sovereign or superior as a prerogative.
2. a charge on bullion brought to the mint to be coined.
3. the difference between the cost of the bullion plus minting expenses and the value as money of the pieces coined, constituting a source of government revenue.
Also, seignorage.
[1400-50; late ME seigneurage < MF seignorage, seigneurage; see SEIGNEUR, -AGE]

* * *

Charge over and above the expenses of coinage that is deducted from the bullion brought to a mint to be coined.

From early times, coinage was the prerogative of kings, who prescribed the amount they were to receive as seigniorage. This was sometimes compensated for by replacing part of the gold or silver with base metal, resulting in debased coinage. In England all such charges were abolished in 1666. Because coins are now issued only as token money, they no longer need to possess a high intrinsic value, and low-standard silver or base-metal alloys are sufficient. The margin between the cost of producing a coin and its currency value is known as seigniorage.

* * *

      the charge over and above the expenses of coinage (making into coins) that is deducted from the bullion brought to a mint to be coined. From early times, coinage was the prerogative of kings, who prescribed the total charge and the part they were to receive as seigniorage. The deduction was sometimes supplemented by replacing part of the bullion with base metal, resulting in debased coinage. Because the seigniorage and coinage charges were collected by withholding part of the bullion brought for coinage, the currency value of the coins received in exchange was often less than the bullion's market value. Eventually, merchants stopped providing bullion for the mint, and the supply of coins became inadequate. In England all charges for coinage were abolished in 1666.

      Because coins are now issued only as token money for domestic purposes, they no longer need possess a high intrinsic value, and low-standard silver or certain base-metal alloys provide all the qualities required. A substantial margin usually exists between the cost of producing a coin and its statutory currency value; this margin, or profit, is known as seigniorage.

* * *


Universalium. 2010.

Игры ⚽ Поможем написать реферат
Synonyms:

Look at other dictionaries:

  • Seigniorage — (pronEng|ˈseɪnjərɪdʒ sei.nY .Ridj ), also spelled seignorage or seigneurage, is the net revenue derived from the issuing of currency. Seigniorage derived from coins arises from the difference between the face value of a coin and the cost of… …   Wikipedia

  • Seigniorage — Seign ior*age, n. [F. seigneuriage, OF. seignorage.] 1. Something claimed or taken by virtue of sovereign prerogative; specifically, a charge or toll deducted from bullion brought to a mint to be coined; the difference between the cost of a mass… …   The Collaborative International Dictionary of English

  • seigniorage — (n.) mid 15c., from O.Fr. seignorage, from seignor (see SEIGNIOR (Cf. seignior)) …   Etymology dictionary

  • seigniorage — (seignorage) (izg. senjorȃž) m DEFINICIJA ekon. razlika između nominalne vrijednosti novca i troška njegove proizvodnje ETIMOLOGIJA fr …   Hrvatski jezični portal

  • seigniorage — [sān′yər ij] n. [ME seignorage < OFr < seignor: see SEIGNIOR] 1. something claimed or taken by a sovereign or other superior as his or her just right or due 2. a government revenue that is the difference between the face value of coins and… …   English World dictionary

  • Seigniorage — Als Seigniorage (historisch auch „Münzgewinn“ oder „Schlagschatz“) werden die vom Staat bzw. von der Notenbank erzielten Nettoerträge bezeichnet, die durch die Emission von Bargeld und andere Formen des Zentralbankgeldes, die private Haushalte… …   Deutsch Wikipedia

  • Seigniorage — The difference between the value of money and the cost to produce it in other words, the economic cost of producing a currency within a given economy or country. If the seigniorage is positive, then the government will make an economic profit; a… …   Investment dictionary

  • seigniorage — The amount of goods and services that the government obtains by printing new money in a given period. Often we consider this in real terms, by dividing the new money by the price level. Bloomberg Financial Dictionary * * * seigniorage UK US (also …   Financial and business terms

  • seigniorage — Brassage Bras sage, n. [F.] A sum formerly levied to pay the expense of coinage; now called {seigniorage}. [1913 Webster] …   The Collaborative International Dictionary of English

  • seigniorage — or seignorage noun Etymology: Middle English seigneurage, from Anglo French seignurage right of the lord (especially to coin money), from seignur Date: 15th century a government revenue from the manufacture of coins calculated as the difference… …   New Collegiate Dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”