History and Description of Banks' Seigniorage Rights with Consequences

Seigniorage refers to the profit that a government, and by extension, its central bank, makes by issuing currency. The term has its roots in medieval times when the seignior, a lord or monarch, would earn revenue by minting coins. In modern times, seigniorage has evolved with the establishment of central banks, and commercial banks also play a role in the creation of money.