• Seigniorage is the difference in the nominal value of money, such as a quarter dollar coin, and the cost of its production.

  • Seigniorage can be considered a positive income for the government when the money it creates is worth more than the cost of its production.
  • In some situations, the production of a currency may result in a loss instead of a profit for the government creating the currency (for example, the production of copper pennies).