// definition
Seigniorage
Income from issuing money
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Short definition
Income arising from money issuance. For central-bank banknotes, it is the income on the assets held against them, less the costs of producing, distributing and managing the notes. It depends on the assets and accounting framework, and differs from the face value of notes or the gains and losses on a QE portfolio.
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Intuition
Non-interest-bearing banknotes can fund income-earning assets, while issuing and managing the notes has a cost.