22 lines
829 B
Markdown
22 lines
829 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-4-chapter-06 -->
|
|
|
|
# False Coiners and Seignorage
|
|
|
|
## Definition
|
|
|
|
The relationship between seignorage levels and counterfeiting incentives, where excessive seignorage creates profitable opportunities for counterfeiters by increasing the gap between bullion value and coin value. Appropriate seignorage levels can deter counterfeiting while generating government revenue.
|
|
|
|
## Source Chapter
|
|
|
|
Book IV, Chapter 6
|
|
|
|
## Context
|
|
|
|
Smith explains how seignorage levels must be carefully calibrated to balance revenue generation against counterfeiting risks. He uses the French example to show how moderate seignorage can be effective without encouraging the dangerous practice of counterfeiting.
|
|
|
|
## Economic Domain
|
|
|
|
Regulation
|
|
|
|
---
|