SEIGNIORAGE.

SEIGNIORAGE. Kids, one of the advantages of having your own currency is that you can profit from printing money. The printing and distribution costs are low. It’s almost all profit. This is called seigniorage. This wikipedia article on seigniorage gives the example of the 50-state series of quarters. The U.S. Treasury planned on a large number of collectors holding the quarters and not using them. In turned out that there are an estimated 147 million people collecting them. It costs only about 5 cents to make a 25 cent coin. The Treasury estimates that it made over 6 billion dollars in seigniorage from the program.

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1 Response to SEIGNIORAGE.

  1. Nick says:

    I know people have mentioned that it costs more money to make a penny than the penny is worth. Is there any chance the penny is eliminated?

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