From the Congressional Glossary – Including Legislative and Budget Terms
Seigniorage
The difference between the face value of minted circulating coins and the cost of their production, including the cost of metal used in the minting and the cost of transporting the coins to Federal Reserve Banks for distribution to the public. Seigniorage reflects an increase in the value of government assets when coinage metal is converted to a coin whose face value is higher than the cost of the metal. Seigniorage arises from the government’s exercise of its monetary powers. In contrast to receipts from the public, seigniorage involves no corresponding payment by another party. For budget reporting purposes, seigniorage is excluded from receipts and treated as a means of financing a deficit–other than borrowing from the public–or as a supplementary amount that can be applied to reduce debt or to increase the Treasury’s cash. The budget includes an estimate of receipts (offsetting collections) equal to the cost of manufacturing and distributing circulating coins, including a charge for capital. (See also Means of Financing.)
Why Governments Create Inflation
More
- Deflation / Inflation / Real Dollar (CongressionalGlossary.com)
- Circulating Coins – US Mint
- “Penny Costs 1.82 Cents to Make in 2017, Nickel Costs 6.6 Cents; US Mint Realizes $391.5M in Seigniorage,” by Mike Unser, Coin News, February 26, 2018
- How much does it cost to produce currency and coin? – FRB
- Making Cents – Snopes
- How Much Does it Cost to Make a Penny? – wiseGEEK
- “Penny: History and Current Status,” CRS Report IF12293 (5-page PDF
) - “Guess How Much It Costs The Government To Produce A Nickel,” by Joe Weisenthal, Business Insider, February 13, 2012
- “Clearing the Air on the Debt Limit,” CRS Report R45011 (33-page PDF
) - “The Debt Limit: History and Recent Increases,” CRS Report RL31967 (43-page PDF)
- “The Debt Limit Since 2011,” CRS Report R43389 (44-page PDF)
- “Clearing the Air on the Debt Limit,” CRS Report R45011 (33-page PDF)
- Production Cost Analysis with Circulating Metal Commodity Metal Prices, December 2014, US Mint (5-page PDF)
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