The return a sovereign (government) earns from creating (minting) money is called

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Social Studies

Aidyn

12 May, 20:48

The return a sovereign (government) earns from creating (minting) money is called

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Kaiden Bryant · Answer 1

The return a sovereign (government) earns from creating (minting) money is called seigniorage. It is the difference of the value of money and the amount it cost to produce it. If this value is positive, then the government would surely have a profit however if it is negative, then there would be an economic loss.