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# Seignorage

## Definition

The difference between the value of money and the cost to produce and distribute it, which Smith discusses as a potential source of government revenue and a factor affecting the value of coin.

## Source Chapter

Book I, Chapter 5

## Context

Smith examines how seignorage affects the relationship between coin and bullion, and how it might be used to regulate the value of different metals in circulation.

## Economic Domain

Regulation

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