Oddbean new post about | logout
 It's funny cause it's true. 

The amount of capital transfer is related to the face value of the money unit minus cost of production of the money unit.

It actually is making a loss for the central bank to issue 0.01$ coins, because it costs 0.05$ to create. 

But a 100$ bill only costs 0.01$ to create, and thus the seignoarage is extremely profitable.

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