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Seigniorage (Seignorage)

February 3, 2021

Derived from the French expression seigneuriage, referring to the right of the lord (seigneur) to mint money. In connection with banknotes seigniorage refers to the interest earned by the central bank when investing the funds received via issuance of banknotes at face value, minus the cost of producing, distributing and replacing them.

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