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asked ago by (120 points)

1 Answer

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answered ago by (2.3k points)
Hello. They receive a segnoirage revenue because of the loans they lend to the financial intermediates in form of interest. When there is a totalitarian government, out of economic issues, they receive security snd loyalty (I think it's a kind of profit).

It can be printed just for reduce public debt, what increases the monetary base and usually finishes in high inflation. If you print money for other purposes and that leads to a higher inflation, public debt decrease their value. So it's easier to pay it from taxes.
commented ago by (120 points)
Thanks Ryan - I am referring to just the notes in your wallet, and also coinage if the face value is greater than the cost of minting.
commented ago by (2.3k points)
You're welcome. They coins in your wallet at the moment have to flow through an intermediate bank. If the goverment print money directly to your wallet I think there is not any segniorage (or profit) but possibly there will be higher taxes due to the increase on your income.
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