What does Seigniorage mean?

What does Seigniorage mean?

The gap between the face value of money and the cost of producing it is known as seigniorage.

When the money a government generates is worth more than it costs to produce, it is considered positive revenue.

Seigniorage is a way for governments to earn revenue without having to collect taxes.

Coins are more expensive to produce than paper currency due to metal prices and manufacturing costs.

India suffered a seigniorage loss in FY 2016-17 as a result of demonetization, since over 90% of notes had to be reprinted.

The cost of printing climbed to Rs 7965 crore in that year, up from Rs 3421 crore the previous year.

What does Seigniorage mean?
What is Seigniorage?
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