Seigniorage
Seigniorage is the real resources a sovereign (or a private issuer of money-like claims) obtains by issuing money whose production cost is below face value.
Definition
Seigniorage refers to like claims) obtains by issuing money whose production cost is below face value. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
It is a named object desks use to frame risk, positioning, or process. When like claims) obtains by issuing money whose production cost is below face value shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what seigniorage is saying. If like claims) obtains by issuing money whose production cost is below face value moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Keep the definition fixed, then challenge it with cross-checks before sizing. Prefer a short written null hypothesis for Seigniorage: what would falsify the current reading in the next window?